National Savings (Hansard, 2 March 1970)

§ Mr. Marples
asked the Chancellor of the Exchequer what were the annual sales and purchases, respectively, of Government stocks available through the National Savings Bank Stock Register during each of the last five years; and what were the administrative costs for running the Register during each of those years.

§ Mr. Taverne
Following is the information:

DEPARTMENT FOR NATIONAL SAVINGS

£m.

Purchases Sales Administrative Costs^*

1964–65 ߪ 4.5 6.3 1.12

1965–66 ߪ 5.4 9.2 1.39

1966–67 ߪ 7.3 6.6 1.35

1967–68 ߪ 8.6 7.2 1.30

1968–69 ߪ 8.4 10.5 1.22

TRUSTEE SAVINGS BANKS

£m.

Including Special Investment Departments Excluding Special Investment Departments Administrative Costs^*†

Purchases Sales Purchases Sales

1964–65 30.9 10.9 4.5 3.2 0.082

1965–66 49.4 34.0 7.1 4.2 0.130

1966–67 54.7 43.8 8.7 3.2 0.154

1967–68 52.4 41.4 9.2 4.2 0.144

1968–69 85.7 32.8 7.8 4.7 0.146

^* The administrative costs include the costs in respect of the non-marketable securities on the Register (Defence Bonds, National Development Bonds and British Savings Bonds) since the cost of the two types of business are not separable.

† The figures of administrative costs for the T.S.Bs. include only directly identifiable costs of administering the Stock Register; other costs are absorbed in the expenses of administering the Ordinary Departments of the banks; the above costs include the expenses incurred by the National Debt Office.

§ 99. Mr. Hastings
asked the Chancellor of the Exchequer by how much payments made to the Post Office Corporation by the Treasury for handling National Savings have been increased in the last three years, or are to be increased, in order to contribute towards the extra profit needed to meet the financial objectives of the corporation.

§ Mr. Taverne
Payments made by the Treasury to the Post Office relate to management expenses and other handling costs for such savings media as National38W Savings Certificates, Premium Savings Bonds, Government stock and bonds and National Savings stamps. Similar charges in respect of National Savings Bank business are met wholly from the Savings Bank Funds.

Financial years to 31st March Change from Treasury Services previous year Savings Bank

£000 £000

1966–67 ߪ ߪ +1,074 +1,296

1967–68 ߪ ߪ -148 +452

1968–69 ߪ ߪ +514 +1,454

For the agency charges after vesting day (1st October 1969) the existing payment arrangement will continue for the six months to 1st April 1970, but with the addition of 2 per cent. profit on expenditure. For the subsequent period fixed price contracts are being negotiated at a rate which includes a profit element of 2 per cent.

§ Mr. Maurice Macmillan
asked the Chancellor of the Exchequer if he will give the total amount of national savings outstanding at the end of each year for the years 1951 to 1969, respectively, at year end 1969 prices and at year end 1951 prices.

§ Mr. Taverne
Following is the information:

TOTAL AMOUNT REMAINING INVESTED IN NATIONAL SAVINGS AT YEAR-END

Adjusted to 1951 prices Adjusted to 1969 prices

Year ߪ £m. £m.

1951 ߪ 6,091.8 10,710.8

1952 ߪ 5,673.8 9,975.9

1953 ߪ 5,537.0 9,735.4

1954 ߪ 5,516.4 9,699.0

1955 ߪ 5,368.7 9,439.4

1956 ߪ 5,213.7 9,166.8

1957 ߪ 5,111.1 8,986.5

1958 ߪ 5,133.5 9,025.9

1959 ߪ 5,402.9 9,499.5

1960 ߪ 5,613.6 9,870.0

1961 ߪ 5,616.2 9,874.5

1962 ߪ 5,583.5 9,817.0

1963 ߪ 5,711.2 10,041.6

1964 ߪ 5,783.2 10,168.1

1965 ߪ 5,575.5 9,803.1

1966 ߪ 5,351.9 9,409.8

1967 ߪ 5,301.7 9,321.6

1968 ߪ 5,123.5 9,008.2

1969 ߪ 4,802.1 8,443.1

§ Mr. Awdry
asked the Chancellor of the Exchequer what is the number of post offices which handle National Savings Bank accounts; what is his estimate of the total number of man-years of post 39W office counter staff time spent, in the most convenient recent 12-month period, on dealing with national savings; and if he will show a separate figure for time spent on the National Savings Bank.

§ Mr. Taverne
21,013 post offices handle National Savings Bank business. For the financial year 1968–69 it is estimated that post office counter staff time totalling 2,094 man years was spent on national savings work, including 889 man years on National Savings Bank business.

§ Mr. Awdry
asked the Chancellor of the Exchequer what are the factors making up the difference between the figure of £8,443 million, being the total national savings at the end of 1969, and the total sums invested in the National Savings Bank, the Savings Certificate Office and the Bond and Stock Office, amounting to £5,846 million.

§ Mr. Taverne
The sum of £5,846 million was the sum invested in the National Savings Banks, the Savings Certificate Office and the Bonds and Stock Office on 31st January, 1970; at the end of 1969 the sum was £5,932 million. The difference of £2,511 million between the latter figure and £8,443 million, the total national savings at the end of 1969, is made up as follows:

£m.

Trustee Savings Banks Ordinary Department 1042.9

Trustee Savings Banks Special Investment Department 1367.9

Trustee Savings Banks Save As You Earn 0.7

Trustee Savings Banks portion of the National Savings Stock Register 99.5

DEPARTMENT FOR NATIONAL SAVINGS
£m.
		Purchases	Sales	Administrative Costs^*
1964–65	ߪ	4.5	6.3	1.12
1965–66	ߪ	5.4	9.2	1.39
1966–67	ߪ	7.3	6.6	1.35
1967–68	ߪ	8.6	7.2	1.30
1968–69	ߪ	8.4	10.5	1.22

TRUSTEE SAVINGS BANKS
£m.
	Including Special Investment Departments	Excluding Special Investment Departments	Administrative Costs^*†
	Purchases	Sales	Purchases	Sales
1964–65	30.9	10.9	4.5	3.2	0.082
1965–66	49.4	34.0	7.1	4.2	0.130
1966–67	54.7	43.8	8.7	3.2	0.154
1967–68	52.4	41.4	9.2	4.2	0.144
1968–69	85.7	32.8	7.8	4.7	0.146
^* The administrative costs include the costs in respect of the non-marketable securities on the Register (Defence Bonds, National Development Bonds and British Savings Bonds) since the cost of the two types of business are not separable.
† The figures of administrative costs for the T.S.Bs. include only directly identifiable costs of administering the Stock Register; other costs are absorbed in the expenses of administering the Ordinary Departments of the banks; the above costs include the expenses incurred by the National Debt Office.

Financial years to 31st March	Change from Treasury Services	previous year Savings Bank
			£000	£000
1966–67	ߪ	ߪ	+1,074	+1,296
1967–68	ߪ	ߪ	-148	+452
1968–69	ߪ	ߪ	+514	+1,454

TOTAL AMOUNT REMAINING INVESTED IN NATIONAL SAVINGS AT YEAR-END
		Adjusted to 1951 prices	Adjusted to 1969 prices
Year	ߪ	£m.	£m.
1951	ߪ	6,091.8	10,710.8
1952	ߪ	5,673.8	9,975.9
1953	ߪ	5,537.0	9,735.4
1954	ߪ	5,516.4	9,699.0
1955	ߪ	5,368.7	9,439.4
1956	ߪ	5,213.7	9,166.8
1957	ߪ	5,111.1	8,986.5
1958	ߪ	5,133.5	9,025.9
1959	ߪ	5,402.9	9,499.5
1960	ߪ	5,613.6	9,870.0
1961	ߪ	5,616.2	9,874.5
1962	ߪ	5,583.5	9,817.0
1963	ߪ	5,711.2	10,041.6
1964	ߪ	5,783.2	10,168.1
1965	ߪ	5,575.5	9,803.1
1966	ߪ	5,351.9	9,409.8
1967	ߪ	5,301.7	9,321.6
1968	ߪ	5,123.5	9,008.2
1969	ߪ	4,802.1	8,443.1

	£m.
Trustee Savings Banks Ordinary Department	1042.9
Trustee Savings Banks Special Investment Department	1367.9
Trustee Savings Banks Save As You Earn	0.7
Trustee Savings Banks portion of the National Savings Stock Register	99.5