Saving Gateway Accounts Bill

There are three broad areas of consideration in respect of this issue, and we touched on them during our early deliberations; I think that we broadly agree on all three. The first is that people who take out the accounts should be able to access their money in full whenever they wish to. We agree on that, but the principle is important. Although we do not want them to access the money as that would rather undermine the purpose of the scheme, many of them would be unlikely to participate in it unless they felt able to access their money if they chose. We have to be extremely cautious about sending out the message that barriers—even if only procedural, rather than absolute—are being put in their way. The second point is that the accounts should resemble a normal savings account as much as possible. In Committee, we discussed whether the accounts should attract any interest, as well as statements and all the features with which people with normal bank savings accounts will be familiar. If we wish people to take up the savings habit and the transition into conventional savings accounts once the two-year period has elapsed, we should want the characteristics of the gateway account to represent a normal account; that is desirable in so far as it can be achieved. The third area relates to the purpose of the entire Bill. Even if the people who take up the option of having one of the accounts decide on occasions to use the money that they have saved on short-term expenditure, the scheme will still succeed if it makes them more likely to be longer-term savers. For me, that is the purpose of the legislation. A significant group of people in society—perhaps, 10, 15 or 20 per cent. of people—have an insufficient stake in their country and society as a whole; I am thinking of their participation in the democratic process and civic society, but the issue is most keenly felt in their lack of stake in the financial future of the country. Even quite modest savings will give such people a feeling that they have something to gain—and even something to lose—according to the fortunes of the country in which they live. It is important that those people do not feel isolated from the mainstream. Any amendments or progress that we can make that encourage people to regard the account as the start of a longer-term trend for their finances, and inclines them to save beyond the two-year period, is to be welcomed—with the caveat that they should not be compelled. I am sympathetic to the motivation behind amendment 1, but I fear that it is too inflexible. The motivation is good, because it accords with the principles that I have sought to outline. Perhaps, however, there is a means of reaching that point that is superior to going down this rather narrow path. If the Minister knows of such means, I would welcome it. However, I urge him to take seriously the inspiration behind amendment 1, because that will govern whether the legislation is deemed a success in five or 10 years’ time.