The ABI has welcomed the Treasury's willingness to consult on the 1 per cent cap revealed in its proposals for Sandler products.
It has also welcomed the decision to treat the existing stakeholder pension as part of the Sandler package rather than create two types of simple pension product.
The ABI says the Treasury proposals open the door to a realistic partnership between Government and the savings industry to opening up saving.
ABI head of life and pensions Alan Woods says: “This document shows the Government is willing to listen. We are pleased they are opening up the question of price capping for debate and have agreed to commission independent research. A 1 per cent price cap would prevent these savings products reaching many people in the Government's target group.”