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Premium Bonds: Third Party Purchases

Volume 572: debated on Thursday 16 May 1996

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asked Her Majesty's Government:Whether they will review the restriction on the purchase of premium bonds as a gift for a third party other than a child or grandchild of the purchaser; and whether they will permit the purchase of premium bonds by a godparent as a gift for a godchild under 16.

We have no present plans to make any changes to the eligibility rules for the purchase of premium bonds. Third party purchases by grandparents are generally more expensive to handle than conventional purchases. Extending eligibility to godparents and others would add to the running costs of the scheme, which are borne by the taxpayer. Third party purchases tend to be for the minimum of £100 and are therefore disproportionately expensive relative to the average purchase of well over £1,700.