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Saving Gateway Accounts Bill

The amendment seeks to limit the flexibility of regulations to set the maturity period, or account duration. Specifically, regulations would not be able to specify an account duration of less than 12 months. Members of the Committee will know that the Government propose that these accounts should last for two years. Leaving this detail to secondary legislation provides the flexibility to make alterations in the future. That might be necessary if experience of the national scheme suggests that a different account length would better achieve the aims of the saving gateway. Based on evidence from the pilots, we believe that an account duration of 24 months will best help to initiate a savings habit. I agree that too short a period is unlikely to be effective in achieving the goal of this policy initiative. However, it is important that we are able to respond to any lessons and information that we secure from operating the national saving gateway, and that we do not place restrictions on the account duration that regulations can prescribe. I therefore hope that the noble Baroness will withdraw her amendment.