Clause 4
12:30 pm
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
The Economic Secretary says that the right period is a matter of judgment. Given the relative generosity of the match that the Government are offering—50p per pound saved, based on the maximum account balance over the two years—we need to encourage people to keep their savings in the account for as long as possible. We have tabled other amendments that explore that issue in more detail. I agree with him—it is not something that we necessarily want to put in the Bill.
I am not going to press the amendment, but it is important that we assess the policy’s long-term effect on savings, and the Economic Secretary was right to comment on that. Two pilots were evaluated and, in the sprit of having an evidence-based policy, we want to ensure that there are longitudinal surveys to see whether two years is sufficient time—or too much, or too little—in which to encourage people to develop a saving culture. With that flexibility in mind, I beg to ask leave to withdraw the amendment.