Government urged to encourage saving through ISA reformation
7th March 2008
The government has been urged to use next week's Budget to encourage saving amongst children and parents by reforming the ISA system.
Nationwide Building Society today (Friday, March 7th) called on chancellor Alistair Darling to follow up on the government-declared commitment to promote saving through ISAs.
In particular, Nationwide recommended that a withdrawal buffer be introduced which, it maintained, would help people on lower incomes.
Graham Beale, chief executive of Nationwide, commented: "The ISA system has proved to be a success with over 16 million accounts in operation, but more can be done to encourage consumers to use their ISA allowance and embrace the tax-efficient benefits they bring.
"And in order to build a savings habit in younger people, we would like to see Alistair Darling encourage more parents to contribute to their children's trust funds and do away with the current tax inequality.
"We hope the chancellor takes this opportunity, to make clear his commitment to saving by making it a priority."