Saving Gateway Accounts Bill

My Lords, I understand the noble Baroness’s concerns in this area and, since our debate on this matter in Grand Committee, we have considered this issue carefully. While we do not anticipate that the situations referred to in the noble Baroness’s amendment will be common, we have decided to strengthen the draft regulations to provide a stronger and broader defence should such cases arise. We now intend to provide in regulations that a saving gateway account can be held only by the person who applied for the account and made the necessary declaration of eligibility at account opening. That is covered by draft Regulation 10(1)(a). We intend that regulations shall also provide that the account must be in the beneficial ownership of the account holder, and not held on behalf of any other person. The effect of these provisions would be that should the person sell, transfer, assign or otherwise allow a charge over their account, it would cease to be a saving gateway account, and any right to a maturity payment would be lost. We intend that draft regulations should provide that an account provider shall have no right of charge, set off or other security against amounts held in a saving gateway account. That is covered by draft Regulation 10(2)(g). We therefore intend to achieve the effect of the noble Baroness’s amendment in regulations. We think that detailed provisions of this kind are most appropriate for regulations, where they can be updated and strengthened where necessary in response to learnings and developments, without the need for primary legislation. In view of that confirmation, I hope that the noble Baroness will seek leave to withdraw her amendment.