Saving Gateway Accounts Bill

My Lords, in Committee we had a very useful debate on the importance of ensuring that the saving gateway is effectively reviewed. At that time, in response to the points made by the noble Baroness and the noble Lords, Lord Newby and Lord Williamson, I indicated that I would seek an opportunity to bring forward a government amendment on this point on Report. I am, therefore, pleased to propose a new clause on review and report to Parliament. I will also use these remarks to address the noble Baroness’ amendments to this proposed new clause. The new clause would require HMRC to commission an independent review of the saving gateway. The requirement that the review be independent means that it must be carried out by a person or body other than HMRC or HM Treasury, so I do not believe that the noble Baroness’s Amendment 18 is required. There will be a commissioning, and possibly a commercial, relationship between HMRC and the reviewer, which will flow from HMRC’s obligation to make the arrangements for the review. However, neither HMRC nor HM Treasury will be involved in the day-to-day conduct of the review. As noble Lords may be aware, independent evaluations of the two saving gateway pilots were carried out by the Personal Finance Research Centre at Bristol University, the Institute for Fiscal Studies and Ipsos MORI, and we would envisage following a similar model for this review. Our amendment specifies some of the matters to be considered in the review. We think it is important for the review to focus on the performance of the scheme against the objectives we have set for it. Therefore, the matters specified at subsections (1)(a) to (d) of the new clause directly relate to the development of a saving habit among account holders, account holders’ engagement with mainstream financial services, and barriers to the opening of saving gateway accounts. However, it would not be appropriate this far ahead to be too prescriptive about all the matters to be considered. The amendment therefore also makes provision, at subsection (1)(e), for other matters to be included in the review where appropriate. I know that the noble Baroness, Lady Noakes, and other noble Lords are concerned about the advice and information available on saving gateway accounts, that the HMRC issues notices of eligibility in an effective and timely fashion, and that there are sufficient providers of saving gateway accounts to ensure customer choice. Amendment 15, in the name of the noble Baroness, would require the review to consider these issues. However, the review, as set down in our new clause, is already broad enough to encompass consideration of these important matters if they remain relevant. For example, the review can look at the available advice and information on the scheme, any issues associated with the issue of notices of eligibility, and any barriers to potential account providers, as part of considering barriers to the opening of accounts. The review can also look at the advice and information that is available to account holders from their providers—for example, when accounts near maturity and savers are considering further saving options—when it considers the effects of the scheme on saving behaviour and on involvement with institutions that offer financial services. Alternatively, it may be appropriate for the review to take a more detailed or wide-ranging look at some of these issues. If so, our new clause would allow this, but it should not require it. Instead, it should be focused on the published objectives of the saving gateway. The new clause requires the HMRC to make arrangements for the review, so it is appropriate that the reviewers provide their results and conclusions to the HMRC, rather than to HM Treasury as the noble Baroness’s Amendment 16 would require. Finally, I assure the noble Baroness that the requirement that the report be laid before Parliament creates an obligation for HM Treasury to lay the report before both Houses of Parliament, so Amendment 17 would not add anything to the Bill. I hope that I have sufficiently assured the noble Baroness that she seeks leave to withdraw her amendment. I beg to move.