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Press release
Equality Bill threatens future of ‘silver saver’ accounts
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Contact: Rachel Wylie Date: 8 May 2009 |
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The Government’s new Equality Bill, due to have its Second Reading in the Commons on 11 May, could outlaw savings accounts aimed specifically at the over 50s age group.
Building societies are major providers of this popular product and the Building Societies Association (BSA) calls on the Government to ensure silver saver accounts are exempted from the forthcoming legislation. With interest rates at historically low levels, savers, especially pensioners, have seen the income they earn on their savings diminish sharply in recent months - this is the worst possible time to put these types of accounts in jeopardy.
The silver saver accounts recognise that older people have saving needs and requirements that often focus on simplicity, reliability, regularity of payment, and supplementing other - often fixed - sources of income. It would be highly detrimental to older savers if a consequence of this legislation meant these accounts were outlawed.
Commenting on the threat to silver saver accounts, Adrian Coles, Director-General of the BSA said:
“It concerns us that this legislation could result in the loss of an account that meets the important social need of older savers. Whilst we support efforts to outlaw unjustifiable age discrimination, we believe these accounts - like children’s accounts - have a legitimate role to play. The Government themselves acknowledged in the recent Budget, by increasing the ISA limit for those over 50 ahead of the rest of the population, that older savers have suffered, so it would seem at odds with their policy to outlaw this product.
“One of the FSA’s Treating Customers Fairly objectives is that products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly - this is exactly what the silver saver accounts do.
“We would like assurance that the future of the silver saver account will not become uncertain and that this type of product be exempted from the legislation.”
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CONTACT: Rachel Wylie
EMAIL: rachel.wylie@bsa.org.uk
The Equality Bill was published on 27 April 2009. The Bill would consolidate all existing UK anti-discrimination laws (equal pay, sex, race, disability, religion, and sexual orientation). Nevertheless, it would also introduce some changes in these areas, and also do some entirely new things, eg extend age discrimination from employment and training, to provision of services. Clause 27 would outlaw discrimination on the relevant grounds - including age - in respect of services but, under clause 190, a Minister has power to bring in an order setting out exceptions to the age discrimination aspects of the Bill. The Bill can be viewed here http://services.parliament.uk/bills/2008-09/equality.html
The Building Societies Association (BSA) represents all 53 building societies in the United Kingdom. Building societies have total assets of £385 billion and, together with their subsidiaries, hold residential mortgages of almost £250 billion, more than 20% of the total outstanding in the UK. Societies hold over £240 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
