The Government has come under fire from a left-wing
thinktank in a damning rep-
ort which criticises stakeholder for creating an advice vacuum.
The Institute of Public Policy Research, which has influenced much of
Labour policy over the last four years,has issued an interim report on
its ongoing project, A New
Contract for Retirement, in which it says the Government's policies in the
tor have raised more ques-
tions than they have answered.
The report asks whether stakeholder is meeting its target audience instead
of serving as a tax break for the rich.
It warns that there is an “advice vacuum” which is leaving those most in
need of advice unlikely to receive it because of the 1 per cent cap on
It also says the viability of the FSA's decision trees is “questionable”.
The IPPR highlights disquiet about the decision to fund only nursing care
and not personal care for long-term care and says if Scotland goes through
with its intention to fund both types of care, the result could be people
from England moving north of the border to take advantage of more generous
It also claims that doubt has been cast on whether the Government's
Catmarked policy for LTC will result in growth
of the industry.
The report says the Gov-ernment should be encouraged to co-operate with
the insurance industry to design life products with an LTC option attached
or which protect people from having to repay the costs of care on the death
of a relative.
Equity-release products, which the IPPR says are another possible solution
to the cost of care, are hampered by “an unfavourable regulatory and policy
Clerical Medical pensions strategy manger Nigel Stammers says: “The report
ses a lot of industry con-
cerns that the industry has already voiced.”