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Letwin brands means-testing as a disincentive to save

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&#39 Association annual conference on The Future of Tax Incentivised Saving last week, after just two weeks in his new role, Letwin slammed the Treasury&#39s 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&#39 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.”


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