Questions & Answers
Q1
Direct Answer
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Context
The question pertains to the effectiveness of government measures in promoting savings among citizens. The MP highlights the popularity of premium bonds as a method for encouraging savings.
What steps she plans to take to encourage saving. The nation’s favourite way to save is through premium bonds. Does the Minister think that they are good for the country and a valuable way of encouraging saving? For everyone who has them, they are quite exciting every month.
I think that premium bonds do provide excitement, not least in my parents’ household, where they are very popular. They are already well promoted and popular, and we have seen annual investments in premium bonds increase by more than 50% since March 2019. The funds raised through them go towards supporting vital public services.
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Assessment & feedback
Response accuracy
Q2
Direct Answer
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Context
The MP references the help to save scheme, a government initiative that has been in operation for seven years and aims to assist individuals with savings. The question is about raising awareness of this scheme.
I warmly welcome the Government’s commitment to extend the help to save scheme, which has been running for seven years. Martin Lewis describes it as a very clever scheme and one that will work for many people. May I urge the Minister to look at what needs to be done to raise awareness of it, because the actual uptake is very low, given that the Government have been giving £1,200 over four years? It is critical that the right investment in promoting it happens, because it is such a brilliant scheme.
I could not agree with one of my predecessors more. The right hon. Gentleman is absolutely correct. It is a great scheme and now that we are expanding it, we will take that opportunity to promote it better.
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Assessment & feedback
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Q3
Partial Answer
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Context
The MP raises concerns about the lack of investment in cash-only ISAs compared to other financial products. She asks for comments on the security of these savings accounts.
We all know how important it is to encourage savings, because so many people are a paycheque away from poverty, but there has been a lot of discussion about lazy capital in cash-only ISAs, for example, and other savings accounts. I know there is a drive by Government to see greater investment. Would the Minister like to expand on the Government’s thoughts on that? In particular, can she make any comments about the security of the cash ISA?
Cash savings provide a vital source of savings for a rainy day, and we recognise that. Equally, we want to build a better investment culture in our society, so that it is not just the 8% of people who can afford financial advice who can have the opportunity of better rewards by investing in British companies and others in our economy.
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Assessment & feedback
The issue of ISA limits was not addressed directly
Response accuracy
Q4
Partial Answer
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Context
The MP raises a concern regarding the possibility of reducing cash savings limits in ISAs from £20,000 to £4,000 annually. The question is about whether this will be implemented.
On that point, it has been widely reported that the Chancellor is planning to slash the amount of cash that savers can save in ISAs from £20,000 to £4,000 a year. Will the Chancellor rule out this punitive measure, which will see savings drop and push even more people into income tax?
We are committed to promoting savings and investment, as I said in an earlier answer. One measure we are looking at is the Financial Conduct Authority’s review of the advice guidance boundary. As I said in a previous answer, I do not want it just to be the 8% of people who can afford financial advice who reap the rewards of investing in our economy. We keep all taxes under review.
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Assessment & feedback
The specific reduction of ISA limits was avoided; instead, a general commitment to reviewing tax measures was given.
Response accuracy
Q5
Partial Answer
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Context
The MP raises concerns about the lack of progress in implementing a pilot digital gilt instrument known as DIGIT, which has been delayed for two years. The question is about whether the minister will ensure that this project moves forward.
The City of London has been a leader of innovation in the world of finance and savings for a few hundred years now, and it has been successful because it has always seized opportunities and innovation when presented. In that spirit, we are pleased that the Chancellor in her Mansion House speech embraced the concept of securities tokenisation, but we now find that the catalyst for this innovation in the UK—a pilot for the digital gilt instrument known as DIGIT—has found itself in a two-year black hole. Innovation is not something that can hang around for two years, so will the Minister give assurances that she will do everything she can to deliver DIGIT as soon as possible?
That sounds like a criticism of the previous Government. I can reassure the hon. Gentleman that we are committed to innovation and to DIGIT.
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Assessment & feedback
The MP's concern about delays was not directly addressed, only acknowledging a general commitment to innovation.
Criticism Of Previous Government
Response accuracy