Saving Gateway Accounts Bill

Indeed, I was coming on to the issue of the 2.7 million people who are eligible to claim those benefits but do not take them up. It is important to take that into account as we look to any extension of the scheme. As the hon. Member for Taunton (Mr. Browne) said, there is a tension resulting from differences in perceived levels of entitlement. However, if 2.7 million people are eligible to take up these benefits but do not do so, I share the Minister’s view that they are unlikely to go for a different form of means-testing to open a saving gateway account. Our debate on numbers has been helpful, because it has shown the scale of the problem. The additional costs that would be incurred by having to set up a means-testing scheme lead one to question whether there is sufficient merit behind the argument to extend the scheme to people on low incomes who are not currently in receipt of benefits. I also accept the point about the flow of people through the system. We touched on that issue occasionally in Committee, and it certainly applies here. The Public Bill Committee debated the issue of people coming on and off jobseeker’s allowance and we discussed a contribution-based benefit for those on low incomes. People will qualify for these benefits at different points in time, raising the question of the best time to capture them. Until people receive benefit, however, they will not be eligible for a saving gateway account. The Bill is a partial solution to encouraging people on low incomes to save. It is probably the most cost-effective solution, but it is not necessarily the ultimate answer, as more work needs to be done to encourage people on low incomes to save, particularly those who are not eligible for this scheme. Perhaps the Financial Inclusion Taskforce could work on how to target that group. Amendment 13 was intended to probe different means of identifying whether the scheme targets all those on low incomes. As the scheme is evaluated, I hope that the mismatch between eligibility through the passporting route and the proportion of the population on low incomes who are eligible will be a central feature because it will enable us to determine whether the scheme needs to be refined, not just in respect of the additional benefits but in relation to whether other ways can be found to roll out the saving gateway account to meet the needs of those who do not currently qualify for it. I beg to ask leave to withdraw the amendment. Amendment, by leave, withdrawn.