The Government is putting the wheels in motion to develop simpler financial products.

Mark Hoban, Financial Secretary to the Treasury, today announced the creation of a steering group tasked with devising a suite of less complicated deals.

The group will report back to Hoban by July 2012, setting out how to bring such products to market, including how they are structured and marketed. 

Hoban says: "Simple financial products have the potential to help many consumers make decisions that will help them save for the first time and plan for a secure financial future for them and their families."

The Government launched a consultation into simpler products last year.

Responses, published today, suggest the group should initially focus on simple deposit savings and protection insurance products. Other areas likely to be considered include investments.

Dan Plant, money analyst, says: "If this means people understand the risk of an investment better, it will be a good thing. But we don't want it to mean lower returns on other products."