Saving scheme wins MPs' support

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Saving scheme wins MPs' support

Tue 9th Oct 2007

The Treasury Select Committee report on financial inclusion has offered support to the Savings Gateway scheme and credit unions.

The report, entitled Financial inclusion follow-up: saving for all and shorter term saving products, recommended the scheme be introduced to encourage those less well off to save more.

One of the key factors in the success of the scheme is funding provided by the government, the report says, highlighting the role played in the first trial by the government when it matched each pound saved by investors with one of their own.

The committee also praised third sector savings institutions such as credit unions and those run by charities.

The comments of John McFall, select committee chairman, were carried in the Guardian: "Credit unions have vast potential to promote saving, and often have a strong base in communities where a small increase in saving can really make a difference to individuals' lives."

Rising interest rates have made savings more profitable and loan repayments, such as mortgages, more expensive

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