Question to the HM Treasury:

To ask His Majesty's Government what plans they have to investigate the rates of saving by UK households.

The Government is committed to incentivising greater saving and investment, to help households save for their future goals and build greater financial resilience.

Individuals can save up to £20,000 into an Individual Savings Account (ISA) each year, and any savings income received on cash within an ISA is tax free. This, coupled with the Personal Savings Allowance of up to £1,000 for basic rate taxpayers and up to £500 for higher rate taxpayers, means that around 90% of people with savings income pay no tax on that income. Individuals aged 18 or over but under 40 can also open a Lifetime ISAs to save for buying a first home or for later life.

Last year, the Chancellor also secured agreement from the FCA to review the cash savings market. As a result, the FCA have published a 14-point action plan. Under the plan, firms should ensure they are effectively communicating their full range of suitable savings products to customers.

The Government will continue to monitor the rates of saving by UK households as part of its wider economic monitoring.