HC Deb 19 November 1992 vol 214 cc298-9W
Mr. Mans

To ask the Secretary of State for Defence if he will make a statement on the new house purchase savings scheme for service personnel.

Mr. Archie Hamilton

I am pleased to announce arrangements for the introduction of the service home savings scheme have been completed. It will come into operation on 1 December 1992. The scheme is open to service personnel who have served for three years and who do not already own a home. If they save regularly for at least five years, with monthly contributions from £50 to £200, then when they buy a home, my Department will give them £1 for every £3 they have saved, including interest earned on their savings.

Four financial institutions have been selected to operate the scheme, and will offer competitive rates on the savings deposited with them. They are:

  • Bank of Scotland
  • Gartmore Money Management
  • Norwich and Peterborough Building Society
  • Skipton Building Society

I am placing in the Library of the House copies of the explanatory brochure on the scheme which is being sent to all service personnel.

The introduction of this new scheme represents a significant step forward in improving the opportunities for service personnel to become home owners.