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£6M consultant fees on personal accounts

The Government has revealed it has already spent over £6m on fees for consultants to advise on pension personal accounts.

In a written answer this week, pensions minister Mike O’Brien said the Department for Work and Pensions has spent £6,604,522 on consultancy advice up to the end of October 2007.

Scottish Life head of pensions strategy Steve Bee says: “If that is where we are now, it is really worrying. This is a lot of money to have spent already considering we have another four years to go.

“What have they actually been consulting on? Let us hope that this has been taken into account in the 0.3 per cent charges.”

Legal & General wealth policy director Adrian Boulding says: “The frustration that we feel is that when Legal & General brings new products to the market, we have to bear those costs ourselves and levy them back to the customers through charges.

“But these costs are being paid for by the taxpayer. The longer the subsidies go on, the more danger we are in of getting into unfair subsidies. If the subsidy becomes unfair, then the European Union will intervene and fine the Government.”

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