Savings Stamps

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 7th March 1967.

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Photo of Mr Kenneth Lewis Mr Kenneth Lewis , Rutland and Stamford 12:00 am, 7th March 1967

asked the Chancellor of the Exchequer whether he will reinstate the 6d. denomination of savings stamps for the benefit of young savers.

Photo of Mr James Callaghan Mr James Callaghan The Chancellor of the Exchequer, Member, Labour Party National Executive Committee

No, Sir. The abolition of the 6d. stamp was necessary to reduce the very high administrative costs of the savings stamp scheme. I am confident that young savers will soon acquire the habit of collecting their sixpences until they can afford one of the new 2s. stamps.

Photo of Mr Kenneth Lewis Mr Kenneth Lewis , Rutland and Stamford

Is the right hon. Gentleman aware that the very young saver gets the saving habit only because his parents teach him the habit? Is he aware that many parents cannot afford to provide their children with the money to buy these 2s. saving stamps, as a result of which a great disservice is being done to the National Savings Movement? Does he also recognise that this is causing a complication in the make-up of the 15s. savings book?

Photo of Mr James Callaghan Mr James Callaghan The Chancellor of the Exchequer, Member, Labour Party National Executive Committee

I do not think so. This matter was thoroughly discussed with the National Savings Movement before the abolition took place. One factor was that more than 90 per cent. of the stamps were cashed before they were converted into securities. It was, therefore, felt that this was an administrative saving that could be made without harming the movement.