This Lords Library briefing provides information on the Savings (Government Contributions) Bill (HL Bill 85 of 2016–17).Jump to full report >>
The Savings (Government Contributions) Bill is a government bill. The Bill has been classified by the Speaker of the House of Commons as a money bill. Following completion of its passage through the House of Commons, the Bill received its first reading in the House of Lords on 13 December 2016. Second reading in the House of Lords and all remaining stages are scheduled for 12 January 2017.
The Bill makes provision for the two new government-supported savings account schemes: Lifetime Individual Savings Accounts (‘Lifetime ISA’ or ‘LISA’), and Help-to-Save accounts, both of which were announced by the Government earlier in 2016. The Bill would make provision for:
During its passage through the House of Commons, opposition parties were sympathetic to the aims of the Bill; namely to encourage and incentivise saving. However, among criticisms by the Labour Party was that the Lifetime ISAs might lead people to opt out of automatic enrolment to workplace pensions and pension savings—both of which Labour contended would always provide better savings for people than the Lifetime ISA. Labour tabled a number of amendments to the Bill, including six at report stage which were designed to ensure Lifetime ISAs would not have a negative impact on the success of automatic enrolment. The Scottish National Party shared Labour’s concerns and tabled amendments to provide that people would receive advice on the suitability of the Lifetime ISA and Help-to-Save products for each person’s individual circumstance, at the point of application. The SNP also tabled amendments to remove the Lifetime ISA from the Bill entirely. A number of divisions took place on these, and others, both at committee and report. However, the Bill was amended only by a small number of government amendments. This House of Lords Library briefing provides an overview of the key policy background and provisions in the Bill, and a summary of the Bill’s proceedings in the House of Commons.
Lords Library notes LLN-2016-0072
Author: Mary Santo
The House of Lords Library delivers research and information services to Members and staff of the House in support of parliamentary business.