Earl Alexander of Tunisasked Her Majesty's Government:
Whether, in view of the increase in sale of Premium Bonds, they will ensure that the prizes are increased accordingly.
§ Lord Mackay of ArdbrecknishUnder the existing Premium Bond prize structure there is one prize for every 15,000 eligible £1 bonds in the draw. This means that as the number of eligible bonds grows, so does the total number of prizes. National Savings have however recently announced a new prize structure to come into effect from the May draw. Under the new structure the total number of prizes will be fixed at 350,000 each month. But the value of the prizes will still grow as the number of eligible bonds increases. The new structure will mean more higher and medium value prizes with fewer £50 and £100 prizes.