Ian Blackford
Main Page: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)Department Debates - View all Ian Blackford's debates with the HM Treasury
(8 years, 2 months ago)
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Simon Kirby
As ever, my hon. Friend makes an excellent point. There were very few people interested in buying those products, which would have resulted in a very poor deal for customers. The market was not big enough to provide value for money and on that basis we decided not to proceed.
Ian Blackford (Ross, Skye and Lochaber) (SNP)
On that point, given that we now know that there was an absence of buyers in the market, where was the Government’s consultation before they offered their proposal? We cannot get away from the fact that this was a manifesto commitment from the Government. I welcome the U-turn; they have done the right thing, but why was the matter not brought to the House? Why did we read about it in the media?
Last April the Financial Conduct Authority said that there were concerns about the secondary market in annuities, which would mean
“a significant risk of poor outcomes for consumers”.
The regulator said:
“Annuities are inherently difficult for consumers to value, and consumers who will be able to participate in this market will include a higher proportion of older, more vulnerable consumers.”
We could see that. The FCA came out with that last April. Why has it taken so long for the Government to do the right thing? We recognise some of the concerns for consumers as a result of the pensions freedoms introduced. May we have a full review of the pensions freedom policy?
Simon Kirby
I thank the hon. Gentleman for recognising that this is the right thing to do. It is a difficult decision and it is, as ever, a balance between two conflicting viewpoints. My job as a Minister at the Treasury is about making sure that consumers are protected, that industries are regulated sufficiently, and that there is the very best possible deal for customers. Withdrawing this product, which is aimed at many old and vulnerable consumers, is absolutely the right thing to do.