Interest Rates

Baroness McIntosh of Pickering Excerpts

Wednesday 23rd September 2020 Lords Chamber

[Baroness Penn (Con)]

My Lords, I also expressed sympathy with those savers, including many noble Lords, who have been affected by the decision to change the interest rates. It is not an easy decision but I have tried to explain to noble Lords that the Government take several factors into account in this decision. One of them is the interests of savers. Premium bonds continue to offer a market-leading rate for those savers. However, that must be balanced against the need to protect the interests of taxpayers and the broader financial services sector.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I congratulate my noble friend Lord Young on securing this Question. Like him, I declare my interest as a holder of NS&I products. There is a particular cohort that has not been raised, and that is pensioners and others living on fixed incomes. After having saved all their lives to have a top-up on those fixed incomes, they will be devastated. Will my noble friend consider something like that put forward by my noble friend Lady Altmann: a form of corona bond for pensioners?

[Baroness Penn (Con)]

The Government will continue to consider all the ways that they can to encourage saving. I am happy to assure both of my noble friends that I will take the specific idea of targeting toward pensioners back to Her Majesty’s Treasury.