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Save As You Earn

Volume 175: debated on Tuesday 26 June 1990

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To ask the Chancellor of the Exchequer when save as you earn will be extended to the banks; and on what terms.

My right hon. Friend the Chancellor of the Exchequer proposed in his Budget that, in addition to the Department for National Savings and building societies, banks may offer SAYE contracts. Provision has accordingly been included in the Finance Bill. Subject to Royal Assent, approved banks will be able to offer SAYE contracts later in the year. The terms of new SAYE contracts associated with approved employee share option schemes, which enable participants to save up to £150 a month to purchase shares in their company, are to be improved at the same time. The bonus paid on completed contracts will be increased from 12 times to 15 times the monthly contribution (when proceeds are taken after five years) and from 24 to 30 times that contribution (when proceeds are taken after seven years).