§ Mr. ToddTo ask the Chancellor of the Exchequer if he will lower the minimum value of Premium Bond purchases to facilitate regular purchases on behalf of children. [3739]
§ Mrs. LiddellThe Government regrets that it is not possible to lower the minimum values premium bond purchase. Small purchases of Premium Bonds are disproportionately expensive to administer. National Savings are not in a position to reduce the £100 minimum purchase when, like other Agencies and departments, they must achieve economies in running costs as part of the process of controlling public expenditure.
Since the return on Premium Bonds takes account of management costs, the relatively higher cost of small purchases would also mean that any reduction in the minimum purchase would reduce the return to holders in general.
National Savings do recognise the need to offer savings opportunities for smaller investments and savings on behalf of children. These include tax-free Children's Bonus Bonds, which can be bought by anyone over the age of 16 for anyone under 16 in units of £25, up to a maximum holding of £1,000 for each issue of the bonds.