Connected 64

Connected 64

connected A Tenet Group Publication Issue 64 Summer 2017

SPECIAL FEATURES Result! Our protection offering provides a great result for everyone – advisers and clients alike.

SPECIAL FEATURES Do you have the right weapons in your armoury to help clients with their financial planning needs?

OTHER FEATURES All the latest from your Events Team Lovely LISA – or Loser?

The changing face of bereavement allowance and protection needs The DWP’s £40m savings plan and why protection advisers are priceless

It takes expertise to identify the most promising investment opportunities. At M&G, we’ve been managing equity funds on an international scale for over 40 years and now look after more than £57 billion* in equity assets. We believe an active management approach drives long-term performance. We choose our own path, using our own analysis to select stocks. Experience has taught us that a consistent approach focused on companies’ long-term prospects can help us reach our goals. To see how our strategies aim to scale the heights, visit www.m and g.co.uk/expertisematters EXPERTISE MATTERS M&G EQUITIES

The Latest Provider Support Offering insight into market conditions and adviser opportunities *As at 31.12.16

Investing with conviction

M&G’s equity funds offer global opportunities, as well as regional focus in the UK, Europe, Asia, US and emerging markets, with a number of different investment styles to choose from. Our funds are managed by talented and experienced professionals who have full freedom to implement their ideas in the portfolios as they see fit. For the full list of M&G’s equity funds, please visit www.m and g.co.uk/expertisematters

Funds on the Tenet panel

M&G GLOBAL EMERGING MARKETS FUND

Fund Manager Matthew Vaight has managed this fund since its launch in 2009, and seeks to provide income and capital growth over the long term (five years or more) by investing mainly in the shares of companies based in emerging market countries. At least 70% of the fund is invested in the shares of companies from across the emerging markets, or companies that conduct the majority of their business in such countries.

Matthew Vaight

Investment approach • Matthew focuses on finding companies with the potential to improve their future profitability or the ability to sustain a high level of profitability over time. • Constructing a portfolio of stocks with different profiles of profitability helps build a diversified portfolio with the potential to cope in different market conditions. • Matthew seeks companies whose future profitability, in his opinion, is undervalued by the market and looks to invest in companies whose corporate governance practises ensure the business is run in the interests of all shareholders.

Reasons to consider investing • A distinctive process designed to deliver consistent performance. • Matthew selects stocks with different drivers of return on capital to create a balanced portfolio that has the potential to perform in a variety of market conditions. • A long-term, contrarian, value-oriented approach that seeks to exploit the short-term, sentiment-driven nature of emerging markets, to identify firms whose future returns are being under-appreciated.

The funds invest mainly in company shares and are therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.

connected A Tenet Group Publication Issue 64 Summer 2017

SPECIAL FEATURES Result! Our protection offering provides a great result for everyone – advisers and clients alike.

SPECIAL FEATURES Do you have the right weapons in your armoury to help clients with their financial planning needs?

OTHER FEATURES All the latest from your Events Team Lovely LISA – or Loser?

The changing face of bereavement allowance and protection needs The DWP’s £40m savings plan and why protection advisers are priceless

The Latest Provider Support Offering insight into market conditions and adviser opportunities

Welcome - 3

CONTENTS… what’s in this issue

Editor’s Foreword

4 Regulation, regulation and even more regulation! A look at the latest regulatory news in which Tenet is active and working to achieve the best outcomes for advisers. 6 Lovely LISA – or Loser? The new Lifetime ISA (LISA) is a means for younger people to save towards their first time home purchase or alternatively a pension. With the government adding a 25% bonus to the amount saved, how does it compare with a Help to Buy ISA or alternative pension provision? 8 Result! Our protection offering provides a great result for everyone – advisers and clients alike. weapons in your armoury to help clients with their financial planning needs? A look at the deals available to you and why they could be useful in helping you deliver the best service to your clients in the most efficient way. bereavement allowance and protection needs The DWP’s £40m savings plan and why protection advisers are priceless 12 The changing face of 10 Do you have the right

The Summer edition of connected is here! Despite the lack of sun and warmth (especially in the North), Summer is with us and with it the latest connected magazine which features a number of our key initiatives for 2017. One area of focus is the provision of protection advice and in this issue we highlight all the support available to you if you write protection business. If you don’t, then why not consider our referral service – not only are you ensuring your clients get the advice they need, but it can generate you an income stream too. Take a look at pages 8 & 9. In addition, our front cover headline highlights our article on the changes to the bereavement allowance and the protection needs created as a result - see page 12 for this. And, a number of provider partners also focus on their protection support too. Helen Ball’s industry update highlights that the FCA is a prolific writer of regulatory papers and that currently the volume of material is extensive. The update therefore focuses on the regulatory papers in which Tenet is active and where we are working hard to deliver the best outcomes for you. Read the full article on pages 4 & 5. Technical Services and Research focus on the new Lifetime ISA and consider this option over the Help to Buy ISA and alternative pension provision, and in our Events focus this issue, we highlight all the forthcoming events available for you to keep up to date, and gain your structured CPD. Also in this issue Financial planning is invariably getting more and more complex with ever increasing regulation. Keeping up to date with changes and developments in the market can be challenging, so choosing the right tools to support your business is essential to ensure that you can continue to provide the best service to your clients in the most efficient way. Tenet have negotiated a number of deals to support advisers in this area and our article on pages 10 &11 highlight what is available. Finally, please do keep your community articles coming in – if you are doing anything interesting, unusual or charitable I would love to include your story in future issues. I hope you enjoy reading connected magazine.

4

10

12

14 All the latest from your Events Team

Cycle Two PDMs, CPDWebinars, Masterclass Two and the Adviser Forum are all featured in this issue – book your events today!

22

PROVIDER SUPPORT 17 - 28 Latest News and Products

Sara J Healey Marketing Consultant

25

FinancialServices Awards2015

BestNetwork

Contacts

Editor Sara Healey

Published quarterly by Tenet Group Limited 5 Lister Hill, Horsforth, Leeds, LS18 5AZ

Connected Magazine is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

Tel 0113 239 0011 Fax 0113 239 5322

Connected - a Tenet Group publication­

4 - Industry Update

REGULATION, REGULATION and even more regulation!

It’s well known that the FCA is a prodigious author and our Policy Team is never short of a new regulatory paper to keep them occupied!

For example, if firms do not have a senior manager, then it raises the prospect of hundreds of advisers effectively disappearing from the FCA register because only senior managers will be listed. We have made that point to the FCA directly and through industry forums. We don’t believe that the answer is to abandon the FCA register but instead to undertake a public awareness campaign to make sure the public know what it’s for and where to find it, otherwise this further opens the doors to unscrupulous scammers and even higher FSCS levies. Positive development on MiFID II The FCA recently published the first of two policy statements, with the positive news being that the regulator does appear to be listening to the feedback provided by us and other respondents, in accepting that the taping of all telephone client conversations is not required. Instead, the requirement would be to tape or take notes of all ‘relevant’ conversations, i.e. where the adviser is receiving, placing or executing orders.

Helen Ball Distribution & Development Director

However, the pure weight of regulatory output at the present time is particularly heavy and there are currently 11 major pieces of regulation from the FCA and Europe that we are actively working on (not counting four subsequent new papers), with much of the implementation due to come into effect in early 2018. I won’t tax you (or myself!) with an update on all of them therefore, but let’s have a quick look at some of the areas where there has been recent activity. Applying the principles of the Senior Manager’s and Certification Regime We have obvious concerns on how to apply the principles devised for large institutions to typically much smaller businesses, with many adviser firms being sole traders or having very few employees! The FCA accepts that it will need to be proportionate and Tenet will play an active role in helping to define what that may look like.

We anticipate that notetaking will be Tenet’s preferred choice for the network and are still working out what details firms must include in their notes ahead of the publication of the full rules in June.

We will communicate further on this following the publication of the final rules but in the meantime, we welcome this positive development.

Industry Update - 5

Summarising the FCA’s business plan for the year ahead In its latest business plan, the FCA outlines the areas of focus and activity for the year ahead. Its commitment to be more transparent and accountable is backed up by a much lengthier document, which is a step-change from recent years, where the regulator appeared to be shying away from sharing any amount of detail. The FCA has set its sights on vulnerable customers and competition within the market, highlighting six long-term cross-sector priorities, which include Promoting Competition and Innovation; Access to Financial Services and Treatment of Existing Customers and Customer Vulnerability. We have already witnessed the regulator starting to flex its muscles on the issue of competition and more intervention in the market looks likely, to help ensure it works more effectively and efficiently for consumers. We feel we are well positioned in this area and for network members we recently introduced a new Client Acquisitions Policy, which sets out the high level standards expected when obtaining a client bank through the purchase of another firm or the appointment of an adviser to your firm with an existing client bank. Pension Freedom and Choice As expected, given the material increase in defined benefit to defined contribution transfers, the FCA is taking an active interest in this particular market space. The FCA is conducting investigative work to see how the market has responded and is also looking into whether consumers are being

provided with relevant information so that they can make an informed decision, be that on an advised or on a non-advised basis. The FCA is also consulting on the proposed pension redress methodology and we have provided our initial thoughts to the FCA on this subject. We have now been invited to provide additional commentary as we believe there are better alternatives in certain circumstances. If the proposals go ahead as they currently stand, any unsuitable case would see an increase in the amount of redress payable of somewhere between 5% and 30%, depending on individual circumstances.

FSCS Funding Finally, just a really quick update on the basis that the FCA closed its consultation at the end of March and is expected to further consult on some specific points and publish some rules in a Policy Statement later this year. There are some welcome proposals however, such as the introduction of provider contributions and consideration of risk-based levies. The provider contribution therefore looks like the regulator’s preferred direction of travel, as opposed to a product levy paid by the consumer, but will achieve the same goal of moving the cost away from advisers. That just leaves me to say, enjoy your summer and I’ll be updating you again in the autumn.

6 - Special Feature

The new Lifetime ISA (LISA) was launched on the 6th April 2017 as a means for younger people to save towards their first time home purchase or alternatively a pension. With the government adding a 25% bonus to the amount saved, how does it compare with a Help to Buy ISA or alternative pension provision.

The Bonus The government bonus is paid annually for the 2017/18 tax year then monthly from 2018/19, so investors can earn interest and investment growth on both their contributions and the bonus. The LISA must be held for at least 12 months before the first bonus is paid. Monies transferred in from another ISA are also eligible for the bonus. Withdrawals The funds within the LISA can be withdrawn for either first time home purchase or any time from the 60th birthday for any reason without charge. The other circumstances for withdrawals without charge are: • Terminal illness – Upon diagnosis of a terminal illness, an investor can withdraw all of their funds including the government bonus. The definition for terminal illness will be based upon that used for pensions i.e. has a life expectancy of less than one year. • Death of the account holder – The funds form part of the estate for inheritance tax purposes. The money will no longer be within a LISA so taxation may apply on returns after death. The spouse or civil partner can inherit their funds and will be able to add this to their own ISA on top of their usual allowance. If partial or full withdrawals are made for any other reason after 6 April 2018, then a 25% charge will be applied on the withdrawal. For example, if £4,000 is invested in the 2017/18 tax year and the government adds the bonus of £1,000 at the end of the year and £5,000 is withdrawn, then the investor will only receive £3,750.

Kate Quarmby Trainee Technical Services and Research Consultant

Let’s outline the basics of the new LISA first From April 2017, qualifying people aged between 18 and 39 can take out a LISA, and are able to save up to £4,000 per tax year, with contributions continuing up to the day before the individual reaches age 50.The government will add a 25% bonus into the ISA up to a maximum of £1,000 per annum.This means a potential maximum bonus of £32,000 on savings of £128,000.The annual LISA limit of £4,000 will contribute to the overall ISA limits i.e. £20,000 in the current tax year. To qualify an individual must be a UK resident, or a Crown servant such as a member of the armed forces serving overseas, or their spouse or civil partner.

Special Feature - 7

Comparing LISA & Help to Buy Lifetime ISAs have many similarities to the Help to Buy ISA, however it is much more flexible and has the potential for far greater government contributions.

If an investor withdraws money in the 2017/18 tax year then the bonus will not be added, and the 25% withdrawal charge will not be applied. However, the LISA must be closed. This exception applies to the 2017/18 tax year only. An individual will be able to open another LISA in the tax year if they wish. First Time Home purchase If the intention is to purchase your first home then certain rules apply as follows: • In order to be eligible for the government bonus there is an initial minimum holding period of 12 months from opening the account before any withdrawals can be made for home purchase. • After the initial holding period, up to 100% can be withdrawn, including the government bonus. • The savings can be used for a deposit on a house worth up to £450,000 anywhere in the UK (as their only residence, not a buy-to- let). This only applies to houses purchased with a mortgage and not outright with cash. • Lifetime ISAs are limited to one per person, not per house. This means, for a joint house purchase, if both individuals are first time buyers, they can have a LISA each and benefit from the government bonus on both. • When buying a home, the investor must inform the ISA manager of the purchase and they will claim any additional bonus from HMRC. The withdrawal will be paid direct to the conveyancer. (In the event of the sale falling through, the conveyancer will pay the money back to the same ISA manager). Connection with the Help to Buy ISA The Help to Buy ISA has been available since the 1 December 2015 and will continue to be open for new savers until 30 November 2019, with continuing contributions until 2029. Unlike the Lifetime ISA, it can only be used for first-time buyers house purchases. The Help to Buy ISA also has a government bonus of 25%, but this is much more restricted than the LISA. If an investor already holds a Help to Buy ISA, they can also hold a LISA, or transfer the Help to Buy funds into the LISA. An individual will be able to transfer the funds from their Help to Buy ISA and still receive the government contribution on that amount if transferred in the tax year 2017/18 only. Any savings made into the Help to Buy ISA before 6 April 2017 and placed into the LISA in 2017/18 will not contribute to the annual LISA limit of £4,000. Any contributions made after this point, will count towards the allowance.

Feature

Lifetime ISA

Help to Buy ISA

Bonus %

25%

25% 16+

Age (To Open)

18-39

£4,000 per year No monthly limit

£2,400 per year ( £3,400 first year) £200 per month (£1,200 first month) £3,000 (£900 first year £600 thereafter)

Contribution Limit

(Subject to maximum annual contribution)

£32,000 (£1,000 Per year)

Maximum Bonus

Annually 2017/18 and then monthly from 2018/19 (benefits from investment growth)

When is the bonus paid?

At time of purchase

Up to £250,000 (£450,000 in London)

Max house price

Up to £450,000

Charge on withdrawals (unless house purchase/retirement) When can you use it to buy a house?

25%

0

After the initial 12 months holding period

Once you have saved at least £1,600

If an investor chooses to hold both types of ISA, they can only use the government bonus from one for a house purchase. This means the Help to Buy ISA could be used for a home purchase and a LISA could be used to save for retirement, and benefit from the government bonus on both. Retirement The Lifetime ISA also allows investors to save towards their retirement. The Treasury has been very clear that this is not a pension, however it can be a useful means of retirement provision if a client has already utilised their annual and/or lifetime pension allowances and wants to continue contributing for their retirement. On their 60th birthday, they will be free to do as they wish with the money they saved together with the government bonus, and will be paid completely tax-free. Alternatively, funds can remain invested after the age of 60 and will continue to earn interest and investment growth. Clients over 50 who wish to continue contributing towards their retirement will not have the option of opening a LISA and therefore pensions will likely continue to be the best option. For those clients who receive employer contributions into a pension arrangement, no matter what age, they would be better contributing to this pension arrangement rather than a LISA, where they are able to do so. TS&R research identifies investment backed LISA’s are currently available via: • Hargreaves Lansdown • Transact • Nutmeg • The Share Centre The Technical Services &Research team are always on hand to answer any questions you have about LISAs, or anything else technical, so feel free to give us a call on 0113 2395317 or email [email protected].

Conclusion It’s all well and good commenting on the LISA, but our research indicates that there are very few providers in the market at the moment. There are only a few providers offering Lifetime ISAs at the time of writing.  Four providers offer stocks and shares Lifetime ISAs, with just the Skipton Building Society providing a Cash LISA. So currently a limited choice of one for clients who are planning on a house purchase in the short term (i.e. less than 5 years) where cash is likely to be a more suitable strategy.

8 - Protection Special Focus

Our protection offering provides a great result for everyone – advisers and clients alike. RESULT!

With our ‘win win’ solution you can benefit if you advise on protection or not. YES - I ADVISE ON PROTECTION Do you need help writing protection business? Protection provides clients with peace of mind about their financial future and enables advisers to generate additional income. However, there are many clients that aren’t getting the protection advice they need when they receive mortgage or financial advice. • On average people think they could last 77 days - FACT - the actual is only 29 days • It won’t happen to me - FACT - 50% of people know someone who has suffered a serious illness or injury • I will manage - FACT - 35% of households have no savings At the start of 2017, we launched details of a new range of protection support for advisers, which included protection tools and support materials, and a referral service to help you make sure your clients get the cover they need. Here are some interesting statistics you can share with your clients during your discussions:

Protection Special Focus - 9

PLUS: New helpdesk support

SUPPORT AVAILABLE NOW New marketing support – The support includes toolkit items; leaflets, posters and press adverts that you can use with your own firm’s logo and contact details to help you generate more business. We have also developed a detailed protection guide for clients to help them recognise the importance of having cover in place. Plus, for advisers not providing protection advice, we have created an introducer leaflet to help you refer business to the helpdesk.

– we now have a dedicated Mortgage and Protection Helpdesk to help all advisers with protection, mortgage or general insurance queries and referrals. New protection fact find and ‘demands & needs’ template – these are much shorter than the previous versions, making them quicker and easier to use. New protection declaration – to use with clients who refuse to have protection advice or don’t go ahead with a recommendation. By asking the client to sign the waiver form it heightens the importance and may make them think differently. For full details about the protection support available visit the extranet: https://www.tenetgroup.co.uk/extranet/146.html NO - I DON’T ADVISE ON PROTECTION - HOW DOES THIS HELP ME? If you are struggling to find time to provide protection advice for all your clients, refer the business to us and receive 30% of the initial commission with no clawback after 6 months. If you don’t currently advise on protection business or struggle to have enough time to do it for every client, you can still ensure your clients get the cover they need by referring them to our Mortgage & Protection Helpdesk. You will retain ownership of the client and we’ll only advise the client on the areas of business you ask us to. For any business we write, you will receive 30% of the initial commission, with no clawback after 6 months. To put this into context, even if you only had one piece of protection business each month, you are still potentially looking at generating £000s a year. What’s more, by having the right cover, your clients or their loved ones could have access to money they need at a time in their life when they need it the most.

This referral service is also available for mortgages and general insurance. So, don’t miss the opportunity to generate additional revenue for your business.

To talk to the mortgage and protection helpdesk today don’t hesitate to get in touch: Call: 0113 2395111 Email: [email protected] or [email protected]

10 - Special Feature

Do you have the right weapons in your armoury to help clients with their financial planning needs?

A focus on financial planning tools and the dealsTenet have sourced to help… Financial planning is invariably getting more and more complex with ever increasing regulation. Keeping up to date with changes and developments in the market can be challenging. Choosing the right tools to support your business is essential to ensure that you can continue to provide the best service to your clients in the most efficient way. Financial Planning tools are ever evolving and more sophisticated than ever. Some of those that you might wish to consider are covered below: Cash Flow Analysis Cash Flow analysis is extremely powerful. It allows you to provide a visual representation of a client’s situation, and work with them to establish realistic goals and objectives. Once you have put a recommendation in place, a cash flow can support your recommendation and show the likely chance of success. Not only this, but as part of an ongoing review service, it can demonstrate whether or not the client is on track to meet these goals, providing reassurance or the opportunity to make changes if necessary. Investment, Platform & Product Research Whether you are operating a centralised investment proposition, or doing research on a bespoke basis for your clients, being able to find suitable products from the market for clients can be resource intensive. There are a number of tools that can support you with this, allowing you to filter the market on factors such as performance, ratings, service, features and cost. Many can incorporate investment, platforms and products within the one solution.

Protection Within the protection market there are many tools that can provide you with instant quotations for cover. Protection is often an overlooked area, yet it is vital that clients are made aware of the risks they face if it is not addressed. Having tools in place that can support you in having these conversations is essential. Take just 5 minutes to check out the financial planning tools available in ‘Tenet Deals’ and see if your business could benefit. FINANCIAL PLANNING TOOLS – A SNAPSHOT OF SOME OF THE DEALS AVAILABLE

• Prestwood Software LTD (truth) • Voyant (*Connect only) • CashCalc • Defaqto Engage • FE Analytics • Selectapension

• Morningstar • AdviserAsset • Assureweb • iress

Special Feature - 11

So, if you haven’t already done so, simply visit the ‘Grow Your Business’ area of the member extranet :- https://www.tenetgroup.co.uk/extranet/11834.html and take a look around (Your extranet will provide full details of the deals available to you based upon your relationship with Tenet – i.e. a TenetConnect member or TenetSelect client.) This section of the extranet is really worth taking a look over as it is full of offers and deals specially negotiated for Tenet members and clients. Divided into Software Deals, Adviser Support Deals and Product Deals, each area lists a number of carefully selected suppliers who are offering enhanced terms for Tenet members on their products and services.

SOFTWARE DEALS **

Features a collection of special deals that have been negotiated with software providers for the benefit of Tenet advisers, including client management/back-office systems, risk profiling tools and financial planning tools. Examples of some of these deals are listed below.

Client Management/ Back-office systems • StayPrivate • Reckon - Virtual Cabinet • CRIS Referral Management • Boox

ADVISER SUPPORT DEALS • Moneycorp

Risk profiling tools • Dynamic Planner • EValue Financial planning tools • Deposit Sense • FreeBen • SolutionBuilder • CII Expert • Tax Efficient Review

PRODUCT DEALS Here you can find details of Platform Special deals and Discretionary Management deals introduced specifically for your clients. • Investec Wealth and Investment • Quilter Cheviot Tailored Discretionary Portfolio Service • Rathbones Investment Management • Brewin Dolphin

Discretionary Management • Aegon Platform • Cofunds Platform • Aviva Platform

**These tools are not regulated products and should only be used to assist advisers in the recommendation process. As such, this compilation is not a “recommended panel” of software systems, but will include the most commonly used tools in the marketplace today.

EVERYTHING IN ONE PLACE We hope you can take advantage of some of the fantastic deals which are on offer to you as a Tenet member. We are always looking for new suppliers to add to the range so do keep visiting the site to check out the latest deals.

Disclaimer Our website contains links to websites owned and operated by third parties. If you use these links, you leave our Website. These links are provided for your information and convenience only and neither Tenet Group Limited nor any company within the Tenet Group of companies (together referred to as Tenet), including its employees or agents, are providing any endorsement or assurance on the accuracy or completeness of the content of such linked websites or third parties. Tenet has no control over the contents of any linked website and is not responsible for these websites or their content or availability. Tenet therefore makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, the information contained on them or the suitability or quality of any of their products or services. If you decide to access any third party websites (including, but not limited to, the websites of any software providers with whom Tenet has negotiated specific deals for the benefit of Tenet advisers) and make use of the information contained on them and/or enter into any contract for the supply of goods or services from any such third party, you do so entirely at your own risk. Tenet accepts no liability for any damage or loss, however caused, in connection with the use of, or reliance on, any information, material, products or services contained on, or accessed through, any such linked website.

12 - Special Feature

The changing face of bereavement allowance and protection needs

The DWP’s £40m savings plan and why protection advisers are priceless The Pensions Act replaced a number of benefits, including the Widowed Parent’s Allowance (WPA) with a single system of Bereavement Support Payment (BSP) on 6 April. This has huge implications for a surviving spouse going forwards, in terms of both the level of benefit and the payment term. In its wake, Tenet Head of Training, Dave Pearce, reminded advisers about the increased importance of engaging with clients about their protection needs: “For many years, successive governments have been a very benevolent insurer, by providing nearly £6,000 per year through the widowed parent’s allowances,” he commented. “This all changed in April and advisers have an essential role to play in educating clients and ensuring that they have suitable protection in place.” This is a summary of the main changes and the key points you need to be making to your clients when discussing their protection needs. Quoting the Pensions Act and how it has replaced a number of benefits, including Widowed Parent’s Allowance (WPA) with a single system of Bereavement Support Payment (BSP), may not necessarily engage your clients. However, showing the following facts and figures may invoke a different and more positive response. Up to 6 April a surviving parent received: • £112.55 per week until the children were grown up (taxable) • A lump sum of £2,000 From 6 April this will change to: • £350 per month for 18 months ONLY (non-taxable) • A lump sum of £3,500 This will save the government an estimated £40m a year. Consider the ongoing income position (ignoring the small lump sum payments), of a surviving spouse who potentially could have claimed over the following periods (the actual period would depend on the age of the children but let’s keep it simple).

SYSTEM

TOTAL PAYMENTS PER YEAR

PERIOD TOTAL

Pre 6th April

5,852.60

10 years

58,526

6th April onwards Reduction In Benefit

4,800

18 months 6,300

52,226

SYSTEM

TOTAL PAYMENTS PER YEAR

PERIOD TOTAL

Pre 6th April

5,852.60

15 years

87,789

6th April onwards Reduction In Benefit

4,800

18 months 6,300

81,849

SYSTEM

TOTAL PAYMENTS PER YEAR

PERIOD TOTAL

Pre 6th April

5,852.60

20 years

117,052

6th April onwards Reduction In Benefit

4,800

18 months 6,300

110,752

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