Saving Gateway Accounts Bill

My Lords, this amendment would prevent regulations from setting a match rate of higher than £1 from the Government for every £1 saved by account holders. As noble Lords may know, we intend to set a match rate of 50p for each £1 saved, so this amendment would allow some flexibility for increasing the match rate. However, the amendment would limit that flexibility, and I am not convinced that there is a good reason to do so. Of course, too high a match rate would not represent good value for money for the taxpayer. It would depart from the concept of encouraging saving. However, it is important that we are able to respond to any lessons we learn from the operation of the national saving gateway scheme. We should bear in mind that there are matched savings schemes elsewhere in the world that have match rates of higher than £1 for £1. Although those schemes tend to prescribe a fixed end use for the funds saved, for instance home purchase or to evidence commitment to education, they are still about saving, so it is conceivable that a Government in the future may want to set a match rate, in certain circumstances, higher than £1 for £1. Although that is not our intention, and the noble Baroness has indicated that it would not be hers either, I am not convinced that we should take this option away. I also remind the House that any change to the match rate would be subject to the affirmative procedure, and therefore not unfettered as described, which means that Parliament would have the chance to scrutinise any change. I hope, in those circumstances, that the noble Baroness will withdraw her amendment.