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Finance: Savings

Volume 717: debated on Monday 8 February 2010

Question

Asked by

To ask Her Majesty's Government what plans they have to raise the savings ratio in the United Kingdom. [HL1594]

The gross household saving ratio is currently 8.6 per cent (2009Q3), up from an average of 4.4 per cent between 2000-06. Estimates of the saving ratio can be revised quite heavily as new data on income and spending become available. The pace and extent of the adjustment currently reported are therefore subject to uncertainty. However, it seems clear that a significant adjustment is underway.

The Government's savings strategy focuses on developing a range of savings opportunities suitable for each life stage, and providing incentives for saving through the tax and benefit system. In support of this, the Government have introduced ISAs and the Child Trust Fund, and will introduce the Saving Gateway in 2010 to encourage saving amongst working-age people on lower incomes. Private pension reform will enable and encourage more people to build up a private pension income.