Premium Bonds

HM Treasury written question – answered at on 20 April 2017.

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Photo of Drew Hendry Drew Hendry Shadow SNP Westminster Group Leader (Transport)

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential merits of (a) increasing the number of premium bond prizes and (b) funding an increase in the number of premium bond prizes by reducing the financial value of those prizes.

Photo of Simon Kirby Simon Kirby The Economic Secretary to the Treasury

NS&I reviews the Premium Bonds prize structure regularly to ensure that it provides fair value to both customers and taxpayers.

In February 2017, NS&I announced a reduction to the Premium Bond prize fund rate from 1.25% to 1.15%. This change will take effect on 1 May. As part of this change, NS&I has sought to maintain a similar overall number of prizes by reducing the number of prizes in the £50 and £5,000 range, and increasing the number of £25 prizes. The two monthly £1 million prizes remain in place.

More than 20 million people in the UK hold Premium Bonds and it is challenging to set a prize structure which satisfies all customers. NS&I feels that the current prize structure strikes the right balance between those customers who want a chance to win high value prizes and those who would like to see more low value prizes.

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