§ Mr. GibbTo ask the Chancellor of the Exchequer how much income, or deemed income, is received from premium bonds per annum; and what percentage of this income is paid out in prizes. [91276]
§ Ms HewittMoney saved in Premium Bonds forms part of the Government's funding programme; as such no income is generated from them. The return to savers is in the form of the chance to win tax free prizes each month.
The monthly prize fund is calculated by applying a variable notional rate of interest, currently 3.25 per cent. per annum, to the number of eligible bonds.
§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer how many people, and what percentage of the population, held premium bonds in(a) 1979, (b) 1989 and (c) 1999; and what was the average holding. [91402]
§ Ms HewittThe number of holdings, percentage of the population holding Premium Bonds and the average holding are shown in the following table.
Date Number of holdings (millions) Percentage of population Average holdings (£) March 1979 25.5 44.5 56 March 1989 24.2 42.2 95 March 1999 23.0 38.8 559