TREATMENT OF SAVERS

Motion Text

That this House recognises that there are six times more savers in the UK than mortgage holders; further recognises that saving is a practice that should be encouraged but has declined rapidly in recent years; acknowledges that older people in particular are being hit by very low interest rates and age allowance clawback rules that can disadvantage some of those whose income is just less than national average earnings, to the extent of placing them in a marginal tax rate position of 30 per cent., while disadvantaging other over-60s entitled to pension credit by assessing them as receiving a notional return on their savings of 10.4 per cent., which can be several times greater than the return they actually receive; and calls upon the Government to review the way these groups are assessed as a matter of urgency.