Legislation, regulation, consolidation. It is all change, as usual in the corporate intermediary space. The changes that we do know about are breathtaking enough. But there are some calling for this moment of political flux to be used as an opportunity for an even more radical overhaul of our benefits system.
The financial crisis that we have by now become so used to, and sick of, is making us all take a long hard look at the way things are, and ponder how they could be better. Nothing is beyond challenge right now, whether it is the right of a minister to ride first class in a train, a BBC celebrity to receive a seven figure salary or higher rate taxpayers to continue to get 40 or even 50 per cent tax relief. With billions of pounds to be saved, suddenly any ideas that help balance the books look a whole lot more attractive.
Yet we should be wary of throwing out the baby with the bathwater. Cost-cutting in our own industry is an attractive message for cash-strapped finance directors. But we should be careful about undervaluing what the benefits sector has to offer.
It is nearly two years since the global economy ground to a halt and we are apparently coming slowly out of recession. But with real cuts yet to be made let alone felt, we are by no means out of the woods. Hopefully we will avoid a double dip, but we can still expect an atmosphere of austerity amongst employers as cuts take their toll.
It is crucial that, through this period, advisers and providers avoid the downward spiral of cost-cutting that could cause long-term damage to our sector. We should remain positive about the value of employee benefits to employers and employees alike.
