Minister applies 'baked bean test' to pension charges Asked about the possibility of a cap on charges, Mr Webb said: "Why doesn't the Government set a price cap on a tin of baked beans? We don't need to because there's a vibrant market, people have lots of choice. Mr Webb said that at the top of the market the pensions industry worked in a similar way, but the question as auto-enrolment was rolled out would be whether smaller employers were able to choose good quality providers. He said he had already found that "naming and shaming or naming and praising" schemes had had an impact and competition among providers so far had been "probably more fierce" than expected. The Office of Fair Trading (OFT) launched a probe last week to make sure the pensions people are being placed in will offer savers the best value for money. The OFT will consider whether there is enough pressure on pension providers to keep costs down and how clearly presented their charges are. Mr Webb said some employers might get a "false comfort" from a pension provider if a charge limit is imposed by the Government. He said: "The danger of a charge cap actually is a false sense of security," adding that some firms might "just assume that as long as the firm's below the charge cap it must be good value or all right." Mr Webb said the Government is "absolutely prepared to use a cap if we need to but this would have to be based on evidence that people were signing up for schemes that are not good value, and we haven't got that yet." Earlier this month, major pension providers pledged to show their charges and costs more clearly and consistently to people in workplace pensions.