§ Mr. LoveTo ask the Chancellor of the Exchequer what estimate he has made of the level of savings in ISA accounts over the next five years; and if he will make a statement. [139418]
§ Miss Melanie JohnsonThe provisional value of funds held in ISAs on 5 April 2000 was £28.7 billion, and a further £9.2 billion had been invested by 5 July 2000. The value of funds in future years will depend on a large number of factors including levels of subscriptions, transfers from matured TESSAs, interest rates, share price movements, and withdrawals. The Chancellor announced in the pre-Budget report that to build on the success of 247W ISAs, the higher £7,000 contribution limit (including the higher £3,000 contribution limit for cash ISAs) will be retained for a further five years until April 2006.
§ Mr. LoveTo ask the Chancellor of the Exchequer how many ISA accounts have been opened; how much has been invested in total in ISA accounts to date; how much was invested in(a) PEPs and (b) TESSAs in the same introductory period; and if he will make a statement. [139417]
§ Miss Melanie JohnsonIndividual Savings Accounts have attracted £37.6 billion in their first year and a quarter. Almost 9.3 million accounts were opened in 1999–2000.
There were some 3.1 million TESSAs after their first year and a quarter, in which £10.4 billion had been invested. A similar comparative figure for PEPs is not available, but PEPs attracted only £480 million in their first year from 270,000 investors, and a further £200 million from 120,000 investors in their second year.