§ Mr. Andrew BowdenTo ask the Chancellor of the Exchequer if he will estimate the reduction in administrative costs which will result from the introduction of a minimum £5 sum for deposits in national savings ordinary accounts.
§ Mr. LilleyThe estimated reduction in staff working on ordinary account at the National Savings Bank is 60 full-time staff. The reduction in running costs there is around £500,000 a year. There will also be savings in Post Office agency charges.
§ Mr. Andrew BowdenTo ask the Chancellor of the Exchequer if he will estimate the total reduction in moneys deposited in national savings ordinary accounts which may result from the introduction of a minimum £5 deposit.
§ Mr. LilleyIn 1987–88 some £10 million was deposited in the ordinary account in amounts under £5. It is not possible to forecast to what extent the new minimum will lead to people accumulating sums to deposit and to what extent they will refrain from depositing such amounts in their ordinary accounts.