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Saving Gateway Accounts Bill

My right hon. Friend makes an important point. The Bill does not stipulate that the account provider should provide interest. In this time of low interest rates, I would expect account providers to pay relatively low—if any—interest, so savers will be dependent on the bonus on maturity to provide a return. One of the challenges that emerged from the pilot which the Chief Secretary did not mention was that some savers need to be advised that if they put their money into a straightforward savings account, they will not get the same rate of return as from a saving gateway account. Some financial education needs to be attached to the Bill's implementation to ensure that people know what rate of return they are likely to get when the account matures at the end of the two years. The proposal is important in tackling the financial exclusion of families in receipt of benefits. It should provide an incentive to them for creating a saving habit.