§ Mr. LoughtonTo ask the Chancellor of the Exchequer if he will assess the benefits of (1) streamlining tax-free savings schemes by merging PEPs and ISAs; [R] [89324]
(2) if he will assess the benefits of merging single company PEPs and general PEPs. [R] [89323]
420W
§ Ms Hewitt[holding answer 1 July 1999]: In the light of responses to the initial public consultation on the shape of the ISA scheme, we concluded that existing PEPs at 5 April 1999 should continue, separately from ISAs, under the existing PEP rules. This decision reflects the wishes of a majority of respondents to the consultation and has been approved by Parliament.
However, as my predecessor, my right hon. Friend the Member for Airdrie and Shotts (Mrs. Liddell) made clear to the hon. Member during the Committee stage of last year's Finance Bill, 4 June 1998, Official Report, Standing Committee E, column 524, we will be keeping the position under review.
§ Mr. LoughtonTo ask the Chancellor of the Exchequer (1) how many investors have taken out life insurance ISAs; [R] [89325]
(2) how many people have taken out (a) maxi and (b) mini ISAs and how many took out general and single company PEPs at the same stage in the financial year last year; [R] [89322]
(3) what is the amount of money invested in cash ISAs to date as a proportion of overall investment in ISAs; [R] [89703]
(4) what is the amount of money invested in life insurance ISAs to date as a proportion of overall investment in ISAs. [R] [89704]
§ Ms Hewitt[holding answer 1 July 1999]: Over £4 billion were contributed to ISAs in the first two months after their introduction. This is twice the comparable figures for PEPs and TESSAs in the same period last year.
Bank of England figures show over £3 billion saved in ISA cash accounts operated by banks and building societies and AUTIF figures show over £1 billion saved in ISAs investing in authorised unit trusts and OEICs in April and May. The available figures do not include ISA investment in other areas such as individual shares, or life insurance ISAs, so the full total will be higher.
ISA managers are required to make a quarterly statistical return, which will identify subscriptions made to mini and maxi ISAs, and to individual components, on a quarterly basis. The first return is due to be received in August. The Inland Revenue will be publishing ISA statistics on a quarterly basis, starting later this year.
Reliable comparisons with PEP take-up in earlier years cannot be made on a quarterly basis as statistical returns from PEP managers identify subscriptions only on an annual basis.