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Lloyds axes protection advice; 1,200 jobs at risk

Lloyds Banking Group is pulling out of standalone protection advice, leaving 1,200 branch staff at risk of redundancy, Money Marketing can reveal.

The bank announced to staff today that it will cease to offer standalone advice on protection products through its Halifax, Lloyds Bank and Bank of Scotland branches.

It will continue to offer protection advice alongside mortgage advice.

A spokesman for Lloyds says the decision is down to a lack of demand, and will affect 1,200 staff. Of these, 700 are with Lloyds Bank, 400 with Halifax and 100 with Bank of Scotland.

The spokesman says: “All of these staff are at risk of redundancy. We will do our best to find other job opportunities in the bank and will be offering voluntary redundancy packages.”

In a statement, Lloyds says it has announced a total of 1,250 job losses today. The additional 50 are in operational roles. 

It says the job reductions are part of its strategic plan to cut around 9,000 roles over the next three years.

The bank continues to offer investment advice through its private banking services to those with £100,000 or more to invest, after pulling out of mass market investment advice in September 2012.


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There are 14 comments at the moment, we would love to hear your opinion too.

  1. There has NEVER been a demand for Protection Advice, it is an intangible and has always had to be sold!!!!

  2. Given the fact that the main catalyst for anyone requiring protection “advice” is taking on a mortgage, I am a tad surprised that there are any jobs at risk at all or perhaps that there are even folk employed to offer protection “advice” outside of the mortgage arena.

    From the perspective of some of my own wronged clients, it is a shame that there ever was such a job role within Lloyds.

  3. We're all doomed!!!!! 13th November 2014 at 6:12 pm

    If Protection has always had to have been sold, then how is it that the likes of Moneysupermarket and Cavendish online write so much business on a non advised basis from their comparison sites?

  4. Rt Hon Sir Arthur Streeb-Greebling 13th November 2014 at 6:54 pm

    As DR Johnson said:- “It was not done well. The surprising thing is that it was done atr all”

  5. Well at least Which? can hardly whinge that Lloyds are abandoning their clients.

  6. I think this all is rather short-sighted. To say that the only need for protection to cover a mortgage on a decreasing term is both naive and dangerous for the customer. A mortgage only represents 15-20% of household expenditure. What about covering the remaining costs such as Utility Bills, Council Tax, Loans etc.? Paying off a mortgage with life cover is woefully inadequate. It’s sometimes not enough just to cover a mortgage and the need for advice has never been greater for the consumer. No doubt most of these people who are unfortunate enough to lose their jobs with Lloyds will soon find alternative employment with one of the many IFA networks out there. Hopefully, they may get a whole different perspective of the clear need for protection insurance.

  7. I assume that these roles were catering for the thousands of low turnover businesses that no longer have a business manager locally ( due to previous cutbacks ) who took bank borrowing and gave the opportunity to cross sell, they were only offered Scot Wids policies. With the loss of the low and medium turnover business managers the demand would clearly have dropped dramatically as the over the telephone banking these clients have been dumped with would no doubt be undertaken by inexperienced staff with a scorecard that didnt impact their bonus if no protection sales were undertaken. Sad reflection of a bank that has in reality lost its way, the best the £m execs can come up with is cut cut cut , no experienced staff will be left. I pity the small to medium business you see in every business park or industrial estate left with no personal contact or experienced guidance locally but still being screwed for high charges wherever possible. Goodness knows how they get loan borrowing without this local understanding.

  8. This shows why the public should deal with independent advisers – unlike banks which close divisions down at a whim and adviser has to continue providing a service to his/her clients.

  9. with the demise of the ‘Home’ service at least the Bank offered a low cost service and encouraged people to look at their protection needs…many of these same people will not pass the marble pillars of some local IFA offices and some IFAs aren’t interested in spending time with a client to sell a £20 per month life plan. As has been said before protection was ‘sold’..without the Bank offering/encouragement many people just wont have it.

  10. Lets try to remember that 1,250 people are potentially out of a job. Had i not taken the plunge and moved into the IFA world 2 years ago i would be one of those people since i was a Halifax employee.

    A significant number of these people are diploma qualified financial advisers. It was the banks decision to remove mass market investment advice and concentrate on what it perceived was the more profitable insurance advice market. In my opinion, it was only a matter of time before some manager looking for cost savings decided that they didn’t want to pay professional advisers salaries to people advising on a product range that doesn’t require that level of qualification.

    When i was at Halifax there was a very clear divide between mortgage protection and additional family/income protection. Mortgage advisers could not sell any protection that didn’t match the mortgage (i.e decreasing cover for a repayment mortgage) no matter how much the customer wanted it.

    A sad time for a lot of my friends but not something that surprises me. Lloyds will continue to cut costs and jobs, i’m glad i’m out.

  11. @ We’re all doomed!!!!! | 13 November 2014 6:12 pm

    Your right when you say that protection has to be sold – it’s generally the advisers (be it bank or IFA’s) that would ‘sell’ the policy – the benefits of it at least – and then the client would then invariably use the comparison websites to purchase a potentially cheaper and inferior product.

  12. Shame for those friends of mine who did not take the bank offer to do Level 4, stayed as protection only advisers (Called Financial Consultants) stuck around after the cull in 2012 and now get dumped unceremoniously. It will be interesting to read more about the rationale, perhaps they will revert to their favourite “people don’t want to pay for financial advice’. I would place a bet too that certain organisations would then retain the ongoing trail commission (be it small) from all the thousands of protection plans sold. Once again, another cynical move which leaves Clients staring into the abyss yet again.

  13. Anyone in aberdeen area looking for a job feel free to contact me

  14. A lack of demand has never stopped banks shoving things down punters throats.

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