TISA welcomes stability and progress on savings agenda
TISA welcomes the Government’s PBR commitment to promoting a broader base of savings, through initiatives like Savings Gateway. TISA believes that this innovative programme has the potential to significantly broaden the base of saving in the UK by providing targeted and appropriate incentives such as ‘matching’ and should be incorporated into the Government’s flagship savings regime – the ISA.
TISA has consistently supported the Savings Gateway and has already undertaken work with leading Cash ISA providers to discuss details and technical requirements. The Government’s statement that they are now ready to undertake further feasibility work on how the regime might operate is welcome news and, in response, TISA has today sent a letter to members of its Savings Gateway Working Party to initiate further debate. This will provide a valuable industry resource to Government in the near future.
In other areas of savings policy, as recommended by TISA, the Government announced no further enhancements to the ISA regime ahead of the most significant changes since its introduction, which become effective 6 April 2008. Providers need a stable regulatory environment to ensure that consumers, intermediaries, and other stakeholders understand the new rules.
While TISA advocates some changes to the CTF regime which were not announced in the PBR, it remains confident that as a result of ongoing and constructive dialogue with Government, all stakeholders can work in collaboration to refine what is already a very successful initiative. The result could be a step change in financial education and savings for families, children and young adults in the UK.
TISA Head of Member Services, Carol Knight said,
‘TISA is looking forward to working with the Government to promote greater opportunities for saving through initiatives like the Savings Gateway and to enhance the already successful Child Trust Fund. The simplifications to the ISA structure and the enhancements to that scheme which come into effect April 2008 will provide further benefits for consumers. We also look forward to further constructive dialogue both in the area of saving for retirement as well as financial education and capability.’
For more information:
Carol Knight, TISA Head of Member Services
01642 207207
Jacob Coy, Cicero Consulting
020 7665 9530
079 0039 2531