Monitoring customer vulnerability must now move higher up the agenda

Following the chancellor’s Autumn Statement and the news of significant tax rises and spending cuts, Andrew Gething, managing director of MorganAsh said: “The chancellor made it very clear in advance that his statement will lead to “all of us” paying more tax. That is certainly the case as the measures mean the tax burden on households could be at its highest for 70 years. Even if salaries do go up, the chancellor’s freezing of income tax and national insurance thresholds will see an increase in the proportion of earnings paid to the taxman.

“But even with confirmation of benefits rising in line with inflation, safeguarding the pension ‘triple lock’ and offering further cost of living payments, there’s no question many households will see a significant fall in disposable income. This challenging environment will undoubtedly see more people bearing the full force of the cost-of-living crisis and push more into the ‘vulnerable’ category.

“As a result, monitoring customer vulnerability must now move higher up the agenda for all financial services firms. This is especially true with the arrival of Consumer Duty in July ensuring lenders, providers, brokers and IFAs are all duty bound to prevent foreseeable harm and deliver good outcomes for customers.”