Clause 68
Pensions Bill
9:45 am
Danny Alexander (Shadow Secretary of State for Work and Pensions, Work & Pensions; Inverness, Nairn, Badenoch and Strathspey, Liberal Democrat)
I understand what the Minister is saying. The 3 per cent. figure applies whatever the period of time, so if an employer has to pay their 3 per cent. for a whole year at once, that is the same as paying 12 monthly payments throughout the year. However, what he says raises a further concern in that another option could be open to unscrupulous employers, of whom we know there are very few, but there is a risk none the less. If an employee opts out of being automatically enrolled, they might have a stakeholder scheme into which the employer, if he chooses, could make a lesser contribution on a voluntary basis.