Save Our Savers calls for A FAIR DEAL FOR SAVERS

It is the right of every citizen to save to secure their future. It should be the aim of every Government to encourage saving and to protect savings from:

• Devaluation through inflation
• Unfair legislation and taxation
• Exploitative financial practices

We need a fundamental change of attitude towards savers from Government and the financial sector.

We call upon the Government to introduce a moratorium on income tax on savings whilst inflation is above the base rate.

We call upon the Government to act to protect the value of existing savings, encourage long-term saving and discourage people from borrowing beyond their means.

Steps the Government must take to support savers.

Tax savings fairly
• Once savings rates are again above inflation permanently exempt basic-rate taxpayers from income tax on savings, with higher rate taxpayers charged at their marginal rate.
• Remove the income limit for age-related allowances.

Provide more protection from inflation
• Provide more financial products to protect savers against the effects of inflation.

Improve pensions
• Establish the proposed flat-rate pension that eliminates means testing.
• Facilitate the provision of annuity products so that all pensioners can afford a reasonable index-linked pension.

Curb unfair practices from the finance industry
• Savers must be informed if their money is in “deadbeat” accounts paying substantially below market rate and offered simple transfers to competitive accounts.
• Fees and charges – and their full financial impact – should be clear and fully disclosed in advance.

A country without savers is a country without a future.

Save Our Savers – before it’s too late.

Moratorium on income tax on savings interest

Despite Coalition claims to support savers’ interests, current Government and Bank of England policies are remorselessly destroying our savings, causing hardship to many and jeopardising Britain’s financial prospects.

With base rate at 0.5% and RPI inflation at 5.0% savers are not only losing money, but are being taxed on their losses. This is iniquitous and unfair. Read more.

£10,000 saved two years ago is now only worth £9,100! *
In 2010 inflation wiped £50 billion off the value of our savings

*Based on a basic rate tax payer investing in an average instant access account and using RPI.

Building a savings culture

Our savings culture has been undermined by over-dependence on easy credit. The household savings ratio (a national measure of the proportion of disposable income not spent) declined from an average of 8.5% from 1970-2000 to just 4.3% from 2001-2010.

A healthy savings sector is inextricably tied up with the country’s long-term stability. Savings provide capital for investment and lending, they encourage self-sufficiency and forward planning and provide a safety net for individuals and the country in an economic downturn. Had household savings been higher over the last decade, the UK economy would now be in a far healthier state. Encouraging savings will ensure that our future long-term prosperity is built on a solid foundation. The ethos of the saver should be embraced at national level.