§ Mr. LoveTo ask the Chancellor of the Exchequer how much was invested in individual savings accounts in their first year of operation(a) in total and (b) net of transfers from other savings instruments; how much was invested in (i) TESSAs and (ii) PEPs in their first year of operation; and if he will make a statement. [127835]
§ Miss Melanie JohnsonIndividual Savings Accounts attracted a total of over £28 billion in their first year 1999–2000, which is around a third more than the sum put into PEPs and TESSAs in their last year of operation of 1998–99. This excludes proceeds from matured TESSAs subscribed to cash components of ISAs or TESSA only ISAs. The proportion of funds which is attributable to new savings is not available.
Only £480 million was subscribed to PEPs in their first year (1987) compared to over £16 billion subscribed to the stocks and shares components of ISAs in their first year. The amount invested in TESSAs in their first year (1991) was around £7.3 billion, whereas the cash component of ISAs attracted some £12.3 billion in their first year.