HC Deb 30 January 2003 vol 398 c986W
Dr. Kumar

To ask the Chancellor of the Exchequer what incentives he is putting in place to encourage young people to invest in(a) individual pension schemes and (b) individual savings accounts; and if he will make a statement. [94250]

Ruth Kelly

The Government recognise the value of saving and asset-ownership in providing people with security, comfort in retirement and long-term independence and security. To address the problems that may have discouraged people of all ages from saving in the past the Government are implementing a strategy designed to:

  • create the right environment for saving;
  • provide incentives to save through favourable tax treatment; and
  • ensure everyone has access to the financial information they need to make informed savings decisions.

Young people will, in particular, benefit from pension rules allowing annual contributions of £3,600 irrespective of earnings and already benefit from the ISA rules which allow 16 and 17-year-olds to open a cash ISA. These measures provide the opportunity to begin saving tax-free at an early stage.

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