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Interest Rates

Volume 507: debated on Tuesday 16 March 2010

23. To ask the Chancellor of the Exchequer what recent assessment he has made of the effects on savers of low interest rates. (322208)

The Government seek to support savings and asset ownership for all across the life cycle—from childhood, through working life and into retirement.

The Government recognise that low interest rates, while benefiting many people with mortgages, have meant that savers have seen their return from savings fall.

At Budget 2009 the Government announced a package of measures to help savers. This includes an increase in the ISA limits, an increase in the capital disregard for pensioner-related Housing and Council Tax Benefit, and a campaign encouraging 3.4 million beneficiaries of Pension Credit to claim back any tax they may have overpaid on their savings income.