The Treasury select committee is calling on the Government to examine whether it should offer help to pensioners and other savers who may have been penalised by the Bank of England’s £325bn quantitative easing programme.
According to The Daily Mail, a report published by the TSC today will call on the Government to look at whether it should offer help to those who have been impacted by QE due to low saving rates and falling annuity rates.
MPs want the Bank to publish its estimate of “the overall benefit and loss to individual savers” from QE.
The report says: “We recommend that the Government consider whether there are any measures that should be taken to mitigate the redistributional effects of QE.”
The TSC also calls on the BoE to improve its efforts to explain the money-printing programme to the UK.
It says: “The policy of extremely lax monetary policy has not been without criticism. Under this policy, savers receive a far lower return on their savings than under normal conditions.”
Saga director general Dr. Ros Altmann says: “There is precious little evidence that QE is actually working to boost the economy. But there is plenty of evidence that it is having a dreadful impact on pensions and pension funds.
“It is causing suffering to savers and pensioners who were in no way responsible for the problem of over-indebtedness and irresponsible lending and borrowing that caused the mess in the first place.”