Hargreaves Lansdown outlined 10 key policy areas it would like to see the chancellor address, but Susannah Streeter, head of money and markets at the firm said coming to an agreement with striking workers needs to be top of the agenda.
“Improving literacy and numeracy won’t be easy when mass teachers’ strikes are planned over pay and conditions, while clearing NHS backlogs will prove increasingly difficult if health care workers stage fresh walkouts,” Streeter said.
“The surprise £5.4bn surplus in government finances in January should give more room for manoeuvre when it comes to finding a compromise on public sector pay demands.”
Some of Hargreaves Lansdown's recommendations included removing the money purchase annual allowance as part of a wider review of pension tax relief, introducing a number of changes to ISAs, introducing a social tariff for energy bills and taking steps to reunite 18-year olds with child trust funds.
Child trust funds
Hargreaves Lansdown head of personal finance, Sarah Coles outlined why the firm wants to see the government take steps to reunite 18-year-olds with lost child trust funds.
“In the first seven months after accounts started maturing, there was £394mn sitting untouched in them. In the 22 months since then, the cash mountain will have continued to pile up.
“The government needs to take steps to reunite people with their lost cash,” Coles said.
She acknowledged that it is difficult for the government to target those with forgotten accounts but said it is easy for them to know who has had an anoint by their age.
“There should be nudges built into every contact with this cohort, from when they receive their NI number to when they start work, to let them know there’s free money with their name on it – and directing them to the Government Gateway to track it down,” she added.
Isas
In relation to Isas, Hargreaves Lansdown said it would like to see the government make five key changes.
- Permanently reduce the Lifetime Isa penalty
- Increase the £450,000 cap for a first home bought in the Lisa
- Streamline and reduce the range of Isas
- Allow people to subscribe to as many Isas in a year as they like
- Completely separate the Isa allowances
Head of retirement analysis at the firm, Helen Morrissey explained that Hargreaves Lansdown wants to see the Lifetime Isa penalty be reduced from 25 per cent to 20 per cent on a permanent basis.
