HC Deb 29 June 1875 vol 225 cc738-9
MR. SALT

drew attention to the Act which had been passed in 1864 to empower the Post Office authorities to carry into effect a system of small insurances or annuities, showing that under it a system of deferred annuities were established, than which there could be no better means provided for enabling a man who lived by his daily labour to save money. Under that system a person could buy a small deferred annuity, the money paid in being returnable at option or at death, if before the commencement of the annuity. This was in effect a Savings Bank and a provision for old age or illness, with the advantage of convenience and of perfect security. He had watched the operation of the Act with great interest, and he had been struck by the fact that so very little use had been made of the very convenient mode of making investments which it furnished. He hoped that some consideration would be given to the question, whether greater opportunities might not be taken for rendering the system more popular? Since 1864 there had been very few applications altogether for the three classes of business—immediate annuities, deferred annuities, and life insurance. At present the number of immediate annuities in existence was about 4,000; of deferred annuities, by far the most valuable and important class, only about 300; while of life insurances about 3,600 were issued and in operation. That was a very small result after the system had been in work eight years, and considering that about 4,000 post offices were established as Savings Bank offices. Why had not the system been more successful? He thought the tables were too cumbrous for the intelligence of an ordinary man, who got his living by his daily labour. He would suggest that much simpler tables might be prepared, equally accurate with those now existing but taking periods of ten or five years. Such tables might be easily prepared. There was another point to which he would advert. The knowledge of this system was not well brought home to those most concerned, and he would suggest, if there were not insuperable objections, whether the Post Office agents and messengers themselves might not be employed in this matter. By such an agency he thought the Act might be made much more effectual.

LORD JOHN MANNERS

said, that about three weeks ago the Chancellor of the Exchequer informed the House that he intended during the Recess to give his attention to this subject. This was also his (Lord John Manners's) intention; and they hoped to be able to remove by legislation next year some of the defects that existed in connection with savings banks and the granting of annuities, and also to afford increased facilities in reference to these valuable national institutions. The matter was eminently worthy of the attention of the Government, and he would take care that the suggestions of his hon. Friend should receive the consideration to which they were so well entitled.