Treasury select committee member and Labour MP for Edmonton Andy Love has criticised the Government for not having a plan to increase the rate of saving among the public.
At the fringe event at the Labour conference, Love said the coalition lacks a coherent approach to long-term saving habits. He said: “While I would subscribe to the criticism that the previous Government took a long time to decide what its saving policy should be, a criticism of the coalition would be that everything else is coming second to the spending review and there is no clear coherence to what they appear to be doing in terms of encouraging people to save for a rainy day.”
Which? chief advocate of financial services Doug Taylor said consumers saving into a standard bank account are seeing the value of their pot fall due to low interest rates.
He said: “We are faced with very low short-term interest rates. Is it rational to put your money into an asset that is depreciating day by day? It pays half a per cent or 1 per cent interest while the target rate of inflation is 3 per cent. It may not be the most rational thing for consumers to do with their money.”