Undoing the 1% price cap on stakeholder products would only enable firms to maximise revenue from higher income earners without encouraging low- and medium-income earners to save more, warns the Consumers' Association.
Industry experts argue the price cap has to be increased in order to enable companies to make profits selling products to people on lower incomes. However, the CA criticises this argument, saying it is merely a "smokescreen" to encourage the government to allow higher prices, and thus allow the industry to earn more money from high-income customers. The attack comes just days ahead of the announcement expected from the Treasury on whether it will change the way stakeholder products are priced. The FSA is yet to decide how it might change the way the products are regulated. The CA s...
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