Upfront Commissions to Stay

The HeraldJune 11, 2005

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try estimates that only a third of the 1.8 million vouchers issued have so far been activated, prompting one newspaper to lament last week that parents were "losing" the money altogether.

In fact, all unused vouchers will be invested automatically after a year in a default fund, shared equally among the various providers from the biggest down to the smallest. That could mean a boost for the UK's tiny friendly societies, which specialise in small savings. They are allowed to offer tax-exempt savings but only up to a maximum of pounds-25 a month, a ceiling which they have been lobbying for years to be lifted.

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Upfront Commissions to Stay

A survey in the latest Money Management magazine finds the bigger friendly societies optimistic that the C...

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