Former Chancellor of the Exchequer, Alistair Darling, has warned of an erosion of trust between savers and the financial institutions which manage their money.

Speaking at the Pensions and Lifetime Savings Association (PLSA) Investment Conference last week, 8 March, Darling said that the financial sector is still in a trust deficit with UK consumers following the financial crisis a decade ago.

His comments echo PLSA chair, Richard Butcher, who said that the industry must improve the “trust deficit” between the industry and savers throughout uncertain geopolitical and economic times.

“If you start losing trust in the institutions that keep your savings, then that is a very bad thing,” he said.

“Trust has to be earned, trust has to be deserved.”

Last year, a PLSA survey found that fewer than one-third of savers trusted the financial services industry, falling to just over 20 per cent among baby boomers.

When asked if he thinks the government should consider tinkering with pension tax relief, Darling said that he doesn’t believe the Treasury will seek short-term fix.

He added that revenue, generally, is generated by economic activity, and not by short-term tweaks.

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