Savings (Government Contributions) Bill

Richard Fuller Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 12th December 2016 Commons Chamber

However, I want to stress—I hope this reassures the hon. Member for Walthamstow, who was not on the Bill Committee—that the Bill does allow HMRC to approve a credit union to be an authorised account provider, if we decide to adopt a multiple provider model of account provision in future. NS&I has been adopted in regulations as the provider at this stage, but nothing in the Bill would preclude expanding the provider model in future. I want to assure the hon. Lady and the hon. Member for Harrow West (Mr Thomas) that nothing precludes credit unions from being further involved in future.

[Richard Fuller (Bedford) (Con)]

I listened with interest to the points made by Labour Members about credit unions. I am a member of the Bedford credit union. Will the Minister look specifically at this issue? I think the hon. Member for Walthamstow (Stella Creasy) was saying that the Bill was an opportunity to expand the role of credit unions—they could be given almost a preferred provider status. When the Minister considers expanding the provider model beyond NS&I to include alternative providers, will she look specifically at expanding it solely to credit unions, rather than more broadly?

[Jane Ellison]

I hope that my hon. Friend will understand that it would be pre-emptive of me to make such a commitment at this stage. However, we have been clear that we think that credit unions have a big role to play. The primary legislation does not preclude them from being part of a multiple provider model in future. Indeed, my officials have been in constructive discussions with the credit union movement throughout the passage of the Bill. We are working with the credit union sector to ensure that the final design of Help to Save meets the needs of the target audience. I know that the Economic Secretary to the Treasury is looking forward to meeting the hon. Member for Harrow West and my hon. Friend the Member for South Ribble (Seema Kennedy) to discuss the issue further with the Association of British Credit Unions. Therefore, this is not about excluding the credit union movement. We are in regular, constructive discussion with credit unions. We just feel at this stage that the amendment would not allow us to offer that simple nationwide model on the introduction of Help to Save.