Personal Savings

Treasury written question – answered on 5th July 2018.

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Photo of Gregory Campbell Gregory Campbell Shadow DUP Spokesperson (International Development), Shadow DUP Spokesperson (Cabinet Office)

To ask Mr Chancellor of the Exchequer, what fiscal plans he has to increase the level of personal savings in this Parliament.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government is committed to supporting savers at all stages of life and has introduced a range of measures in recent years to help people build their savings in the way that is right for them.

This year we are introducing a new Help to Save scheme to support working families on low incomes to build up a rainy-day fund, by offering a 50% bonus on up to £50 of monthly savings. We have also increased the ISA allowance by a record amount to £20,000 and introduced a Personal Savings Allowance of up to £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Thanks to these measures over 95% of people pay no tax on their savings income.

Alongside savings measures, the Government has made significant progress on reducing taxes so that working families can take home more of what they earn. As a result of increases to the personal allowance, a typical basic rate taxpayer will pay £1,075 less income tax in 2018-19, compared to 2010-11.

The Chancellor of the Exchequer keeps all tax policy under review to be considered as part of the budget process.

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