§ Mr. LetwinTo ask the Chancellor of the Exchequer if he will introduce an equivalent to the former national savings stamps to encourage saving by children. [58256]
§ Ms Hewitt[holding answer 3 November 1998]: No. National Savings stamps were abolished many years ago following a recommendation from the Committee to Review National Savings (the Page Committee) in June 1973. The stamps were found to be an ineffective way of encouraging small savings. They were also expensive to administer. Re-introduction of stamps or an equivalent scheme is likely to do little to encourage savings and would be costly to the taxpayer. There are many savings schemes designed for children's savings from banks and building societies, and National Savings' Ordinary and Investment accounts and Children's Bonus Bonds are also popular for children's savings. Unlike stamps these offer interest.