View more on these topics

Labour slams Chancellor for labelling guidance as ‘advice’

Labour ministers have attacked Chancellor George Osborne for describing pensions guidance as “advice” in his Budget speech.

In March Osborne said everyone would be entitled to “free, impartial face-to-face advice” about their retirement options from April 2015. However, the Treasury later downgraded the pledge to guidance.

The Treasury select committee and a member of the Work and Pensions select committee has already chastised the Chancellor for his choice of words.

In a debate on the Finance Bill in the House of Commons yesterday, Labour ministers added their criticism.

Shadow Treasury financial secretary Cathy Jamieson said: “There is a world of difference between advice and guidance in technical terms and in terms of legality. The Government need to deal with that. It is important that Government use language consistently and do not inadvertently mislead people about what they are going to get.”

Shadow pensions minister Gregg McClymont added: “The fact is that on the day of the Budget the Chancellor said that there would be guaranteed advice, but that turned out not to be the case. It is now guidance, which is a very different thing.”

Because the debate was on the tax changes to pensions rather than the guidance guarantee, Treasury exchequer secretary David Gauke refused to be drawn on the matter. He said the Government would publish its response to the consultation on guidance “shortly”.

He added: “I agree that it is vital that we get the guidance right. Now is not the occasion for the Government to set out the details of how this will operate, but there will come a point when we will do that. There will be plenty of opportunity for the House to debate those matters.”

In his evidence session to the TSC, Osborne said he chose to use the term advice because he had “to communicate in English so people watching knew what he meant”. But MPs say his speech “could have been better phrased”.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Advice and Guidance, according to the FOS and FCA is very clear and their GUIDANCE is very clear, they cannot understand the problem.

    If a senior MP cannot fall into the trap, how do you think we advisers feel?

  2. Julian Stevens 3rd July 2014 at 3:57 pm

    “It is important that Government use language consistently and do not inadvertently mislead people about what they are going to get.”

    What’s been said so far appears to be not exactly clear, possibly not fair and quite probably misleading. Tut, tut.

    Still, Martin Wheatley’s clarified all the confusion with his magic phrase “guided advice” so now we all know just where we stand. Not.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com