Budget must address the concerns of savers

Tuesday 22 March 2011

Budget must address the concerns of savers

  • Saga calls on Chancellor to bring back National Savings Inflation-linked Certificates

Savers capital being eroded month after month: After today’s horrendous inflation figures, it is essential that the Government must reinstate National Savings inflation-linked certificates. Savers have been hit by falling interest rates and rising inflation. The value of their capital is being eroded month by month and they have been denied the chance to protect themselves.

Rock bottom interest rates and QE were obvious risks for inflation: One of the biggest disasters for savers in the past couple of years was the Government’s decision to withdraw its National Savings Inflation-linked certificates, just at the time when the Bank of England was pursuing its emergency policies of Quantitative Easing and ultra-low interest rates. It was obvious that these policies carried huge inflation risks, yet savers suddenly lost the best way of protecting at least part of their capital.

A giant kick in the teeth for Britain’s savers: By withdrawing the National Savings inflation-linked certificates, the Government took away the only really safe way for savers to protect themselves properly against the effects of inflation. That decision was the ultimate kick in the teeth for Britain’s hard-pressed savers.

Chancellor must now address plight of savers: Saga has consistently called for the Government to address the plight of savers, but all we have had so far is more misery. The Chancellor must now announce that he has listened and will bring back National Savings certificates offering a link to rises in the retail prices index.

The banks have had their protection – now it’s time to protect the prudent savers: The reason for withdrawing the certificates was in order to help the banks and building societies attract more customer deposits, to shore up their balance sheets. But the time to protect them is over – it is now time to protect savers!


For more information please contact the Saga Press Office on 01303 771529.

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