A consumer body claims that introducing more tax breaks on savings products would add another level of complexity and act as a disincentive to savers.
Financial Services Consumer Panel chairman Ann Foster told the Pima conference that tax breaks complicate products that are already difficult for consumers to understand.
Echoing an earlier statement by Shadow Chancellor Oliver Letwin, she said tax breaks are targeting middle-income groups and higher earners rather than the poorest families. She said more focus on personal finance education would help consumers navigate a bewildering array of choice and understand the risks attached to products.
Foster wants to see a nationwide free advice bureau established rather than more “millions spent on campaigns that have bitten the dust”. She said: “It is extremely difficult to tell which tax incentive products are better than those without a tax offering.”