George Osborne has been writing to pensioners highlighting the “market-leading rates” offered by taxpayer-backed bonds for the over-65s, despite the Conservative party’s denials that they are an election bribe for older voters.
The chancellor turned salesman as he sent out letters boasting a “better return on investments” with either 2.8% on a one-year bond or 4% on a three-year bond.
The letters, which carry a prominent picture of Osborne at the top, appear to be designed like official government correspondence, but small print at the bottom of the page shows they are Conservative party election material.
“I want to ensure as many older savers as possible can take advantage of these market-leading bonds,” Osborne writes, before directing recipients to the National Savings and Investments website for more information.
The Conservative party could not immediately say who had been targeted with the letters, but they are known to have gone to older voters in the marginal seat of Watford and the Tory targets of Eastbourne and Lewes, which are held currently held by the Liberal Democrats.
The letters are accompanied by a survey on behalf of the Conservatives that asks questions reminding voters of the policy, such as: “How strongly do you support the creation of a new type of savings bond to help pensioners get a better financial return on their savings?”
Those engaging in financial promotions are meant to be authorised to do so by the Financial Conduct Authority. A Treasury aide said: “HM Treasury officials checked and confirmed this is FCA-compliant.”
Tory sources claim the pensioner bond scheme has nothing to do with the election and is “demand-driven”. But the Institute of Economic Affairs, a free market thinktank, has previously accused Osborne of using the investment products as a cynical bribe for older voters
Mark Littlewood, the IEA’s director general, said last month: “Borrowing more expensively than the government needs to is effectively a direct subsidy to wealthy pensioners from the working-age population.”
Demand for the government-backed bonds has been so high that the NS&I website crashed under the volume of inquiries when the scheme was launched. The deadline was then extended until 15 May – seven days after the election – to give people a longer amount of time to apply for them. Around one million pensioners are expected to benefit.
Labour has accused Osborne of a pre-election giveaway for pensioners to “erase the memory” of previous cuts for older people.
Among those objecting to Osborne’s letter are Gaby Weiner, a Labour activist in Lewes, who wrote to her local newspaper saying: “It is clearly targeting older voters, many with poorer eyesight who may not be able to read the tiny writing about party political origins or who may be convinced that this is indeed an official form to which they have to respond.
“I have returned the letter sent to me, not filled in, with a comment about my disgust at this attempted scam on older people. I suggest that others do the same.”
