View more on these topics

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.”


Pensions Bill widely predicted for December

Liberal Democrat spokesman for work and pensions Steve Webb predicts that the Government will deliver a Pensions Bill by the end of the year, with detailed debates before Parliament breaks up for Christmas. Webb expects the Pensions Bill to contain details of the proposed pension protection fund and changes to the priority order for wind-up. […]

Premier Asset Management – Premier Money Market Fund

Type: Oeic Aim: Income by investing in cash, short-term deposits and money market instruments Minimum investment: Lump sum £1,000, monthly £50 Investment split: 100% cash, short-term deposits and other money market instruments Isa link: No Pep transfers: No Charges: Annual 0.5% Commission: Subject to negotiation Tel: 01483 400400

MP&#39s concern at new breed of structured plan

A Treasury select committee member has raised concerns with the FSA over a new breed of structured product emerging in the marketplace. Liberal Democrat MP Norman Lamb wants the FSA to pay close attention to structured capital at risk products, a high-income bond derivative. He has written to FSA chief executive John Tiner demanding more […]

With-profits is the answer

Three years of negative stockmarket returns has taken its toll on investor confidence and now some would-be investors are choosing to keep their money on deposit. But we need to remind investors that keeping their medium to long-term money on deposit is seldom the best solution. Interest rates are at their lowest level for over […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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