Saving Gateway Accounts Bill

Amendment 4, like the previous amendment, adds words to Clause 2(1). This would require HMRC to issue a notice of eligibility within one month of becoming eligible. A person who is entitled to open a saving gateway account should be entitled to receive that privilege at the earliest possible time. Ideally, that would be at the point that eligibility was established either to a tax credit or to a relevant benefit. My amendment would mean that the individual would have to wait no more than one month to gain access to a saving gateway account. This amendment would link to the desirability of creating a saving habit. The Bill is aimed at those whose income qualifies them for benefits or tax credits and, therefore, is of modest levels. It is in that target group that we are seeking to create the habit of saving. Saving requires forms of weekly or monthly budgeting, so that saving is effectively put on one side. The point at which someone become entitled to a tax credit or a benefit is a natural point at which to identify the possible level of regular savings. If there is too big a gap between the start of the benefit or the tax credit and the opportunity to start saving, the income that has already been received by the individual may already be swallowed up or accounted for as part of regular expenditure. It may be more difficult to carve out saving at a later stage. That is why I believe there needs to be a positive duty on HMRC to get notices out promptly. The Minister will probably say that my amendment goes too far, because if the reasons have nothing to do with the eligible person and HMRC fails to get notice out, there may be doubt about the validity of a notice issued late—for example, if the computer system breaks down completely and has to be rerun and the letters go out late, one would not want that to prevent someone having the saving gateway account. That is certainly not my intention, but there is a lot of scope for HMRC to get notices out very late. A glance at the recent Public Accounts Committee report on HMRC, or previous Treasury Select Committee reports, will show that HMRC often—not deliberately, but as a matter of fact—builds up backlogs in certain areas. A backlog will be harmful to the success of the saving gateway scheme. With that, I hope that the Minister can explain not only what HMRC is expected to do but what will happen if it does not. I beg to move.