§ Mrs. PeacockTo ask the Chancellor of the Duchy of Lancaster what steps he is taking to monitor the new rules concerning the Post Office savings bank, particularly the new limit of £5 savings; what representations he has received on the effect of the rules on children and pensioners saving small amounts of money; and if he will make a statement.
§ Mr. Lilley[holding answer 22 May 1989]: I have been asked to reply.
National savings monitors the performance of all national savings products. The increase from £1 to £5 in the minimum for deposits into the National savings ordinary account from 1 January 1989 has reduced the number of deposits transactions by around 20 per cent. So the measure has achieved its aim of reducing the number of very small deposits, which are as expensive to process as larger deposits. Since Girobank and other financial institutions provide a wide range of savings facilities for very small amounts of savings, I am satisfied that this change has not had a negative effect on children and pensioners.
Representations have been received from many hon. Members and from the members of the public to whom I have explained the reasons for the change.