View more on these topics

Govt extends pensioner bonds deadline

The Government will continue to offer pensioner bonds paying up to 4 per cent for an additional three months and plans to increase the amount available from £10bn to £15bn.

Speaking to the BBC’s Andrew Marr show yesterday, Chancellor George Osborne said the bonds had been “the most successful saving product this country had ever seen”.

Some 110,000 pensioners signed up in the first two days of the bonds going on sale in January, with 600,000 people in total signing up since launch.

Osborne said: “We will guarantee that it remains on sale for a further three months because this Government backs savers and supports people who do the right thing.”

The bonds are available those aged over 65 and pay 2.8 per cent on the one-year bonds and 4 per cent for three-year bonds.

The deadline to invest in the bonds is to be extended until 15 May, a week after the general election.

The chancellor rejected claims that it was unfair for those under 65 to be subsidising the scheme for better-off pensioners.

But think tank the Institute for Economic Affairs said it was wrong to extend the deadline.

Director general Mark Littlewood told the BBC: “Borrowing more expensively than the Government needs to is effectively a direct subsidy to wealthy pensioners from the working-age population.

“Pensioner bonds have never been anything other than a gimmick that will benefit pensioners at the expense of the taxpayer, and it beggars belief that the Government is prolonging such a foolish policy.”

Recommended

Bank-of-england-BoE-Night-700x450.jpg

Equities remain favourable as deflation looms

Inflation could quickly spike once the effect of the tumbling petrol price falls out of CPI calculations if the Bank of England is not careful, experts warn. BoE Governor Mark Carney’s delivery of the latest Bank of England inflation report that confirms deflation is looming, but likely to be short-lived, equities remain the most promising […]

Alan-Lakey-700x450.jpg
3

FOS reopens 13 ‘final’ decisions in 5 years

The Financial Ombudsman Service has reopened 13 complaints following a final ombudsman’s decision in the past five years, Money Marketing can reveal. The FOS caused controversy in September when it reviewed a final decision upheld against Sipp operator Berkeley Burke for failing to carry out adequate due diligence on an unregulated collective investment scheme. The […]

AFH Alan Hudson 700
1

AFH acquires advice firm in deal worth up to £1.7m

Consolidator AFH Financial is to acquire Kidderminster-based adviser firm K.L. Plester Financial Services for up to £1.7m. The first £745,200 will be paid on completion of the deal, while the performance of Plester over the following two years will determine the final instalments, which could be up to £972,000 payable over the next 26 months. […]

Rebecca Prestage Peach 250x255

Compliance tip of the week: Don’t miss a trick with MI

Effective gathering and use of management information crops up time and again in FCA thematic reviews as a key area firms could improve upon. The complaints handling thematic review, published towards the end of 2014, outlined firms do not always take advantage of the data available to them through MI. If done properly, data from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment