New Tory Shadow Chancellor Oliver Letwin says he has no plans to include a price cap in his future policies.
Speaking at the Pep and Isa Managers' Association annual conference on The Future of Tax Incentivised Saving last week, after just two weeks in his new role, Letwin slammed the Treasury's stance on savings.
He said it is not up to the Government to impose price caps on the industry.
Letwin described means-testing through pensions and child trust funds as “a wholly eroding disincentive to save” and forecast that the £27bn savings gap will continue to widen under the present Government as consumers become increasingly reliant on benefits.
Letwin said the lifetime savings account – the Tories' alternative to the Sandler suite of products – would have equivalent or better tax breaks than Isas and offer a greater incentive for lower income earners to start saving.
In an exclusive interview with Money Marketing, Letwin said: “We recognise that people have issues with price caps. Let me put it this way, I do not envisage that as part of our new initiatives. I do not anticipate that we will use caps within our policies.”