Clause 21
Saving Gateway Accounts Bill
9:15 am
Ian Pearson (Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform; Dudley South, Labour)
It might be helpful if I explain that the penalty regime for saving gateway accounts has been modelled closely on the one for child trust funds, as the schemes share several common features. We have not experienced any difficulty with the operation of child trust funds, and this penalty structure closely mirrors that one. The penalty will not exceed the greater of £300 or £1 per account affected. Saving gateway providers may also be child trust fund providers, so having the same penalties will provide consistency.
In any event, we consider that setting the penalty at £300 is proportionate in all circumstances. Banks and other institutions that may offer saving gateway accounts—there are other providers of child trust fund accounts, including credit unions—will be familiar with this regime. We do not expect it to cause any complication and so do not believe that the amendment is necessary. I ask the Committee to resist it.