Help is on its way?

14th October 2016

In her recent keynote speech at the Conservative Party Conference Theresa May gave us a sign that help may be on its way in the Autumn Statement next month. Theresa May called for an end to the super low interest rate environment that has had some bad side effects; “People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer. A change has got to come. And we are going to deliver it”.

Although the Government is unable to affect the Bank of England's decision on interest rates, having been given independence from political control in 1997, it seems they are looking at other ways to influence savers' interest.

There is a lot of speculation that this help could include more tax breaks or a new government-backed savings scheme via National Savings (much like the hugely popular 'Pensioner Bonds') however, we will have to wait on the actual details and what this might look like. Either way, at this point it seems the Government is well aware that savers need some serious help. But with some so-called savings accounts falling to lows of just 0.01%, it's worth noting that no amount of tax relief is going to help.
 
Former Pensions minster Ros Altmann is quoted in the Mail “I am delighted that the Government is finally waking up to the damage being done by the Bank of England’s policies”
 
“Quantitative easing is a disaster for ordinary people and ultra-low interest rates are not working. They are great for those who have assets, but very damaging for pensioners and savers. The latest rate cut and round of quantitative easing was a further kick in the teeth”.
 
We couldn’t have said it better ourselves.
 
Watch this space; we will of course keep you up to date with any news from the Autumn Statement, which is due to take place on 23rd November 2016.

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