Saving Gateway Accounts Bill

I understand the noble Baroness’s intention in tabling these amendments, which would ensure that eligible people have access to financial information, support and guidance. I share the noble Baroness’s view about the importance of improving financial literacy, particularly for those who previously have been excluded from the formal financial sector. A point that has not yet come out in Committee is that the saving gateway will attract, we hope, significant numbers into the formal financial sector who are at the moment largely involved, or significantly involved, with the informal financial sector, with some of the risks that might be so attached. The amendment would ensure that the commissioners for HM Revenue and Customs, which will approve account providers to offer accounts, will, in the exercise of this function, take into consideration access to financial information concerning savings. As I have said, I agree with the noble Baroness about the importance of appropriate access to financial information about savings. The Government and the FSA are working to deliver a shared vision of better informed, better educated and more confident consumers who are equipped to take control of their finances and play an active role in the financial services market, and, in so doing, enhancing their own lives. To that end, last year, we published jointly with the FSA an action plan for financial capability, which set out a number of measures and initiatives to help people manage their money now and in the future. The Government have launched a number of initiatives in that respect that will also be well positioned to offer support to saving gateway account holders and those who are interested in opening accounts. The £12 million regional money guidance pathfinder, which is funded and delivered by the Government and the Financial Services Authority, is on track to launch in the north-west and the north-east of England in the spring. Financial inclusion champions, sponsored by DWP, have been asked to support and work to promote active engagement with government-supported saving schemes, including the saving gateway. HMRC will also send information direct to eligible holders, along with their notice of eligibility. This will explain the scheme and how to open an account. An HMRC contact staff centre will also be able to answer queries regarding the scheme and information will be available on the HMRC website. The Government will continue to explore the advice and support that will be available to eligible people at account opening. The noble Baroness asked when we could expect to see the full Ipsos MORI report. I believe that it will be published next month. The noble Baroness also made the observation that pilots had wider flexibility, so the results were possibly not representative. Her observation is true, but we are carrying out further research, which focuses on people with incomes up to £17,000. We will report on that in due course. I therefore hope, in the circumstances, that the noble Baroness will agree that much is already being done—there is a recognition by the Government and the FSA that there is more to be done—and that the steps being taken are such that the noble Baroness will agree to withdraw her amendment.