11 May 2009
Equality Bill threatens service to older members, says Saffron Building Society
The Government's new Equality Bill, given its Second Reading in the Commons on 11 May, could outlaw savings accounts aimed at the over 50s age group.
Saffron Building Society, the regional mutual serving East Anglia, currently offers accounts for those aged 55+, and has concerns that today's Bill could jeopardise their ability to cater to this specific age group.
Saffron Chief Executive, Andy Golding explained:
"While we support all efforts to ban unjustifiable age discrimination, we feel that this Bill could prohibit the accounts that mutuals such as Saffron offer exclusively to our older customers.
"With interest rates low across the board, it is our intention to support those whose income may well depend on their savings - we have taken steps to protect our 55+ account from rate cuts, and aim to help older savers get the most out of their money. Should the Equality Bill outlaw these accounts, this would let down thousands of long-term savers who would often look to their savings to supplement their pensions.
"The government have already recognised that older savers are suffering in today's low interest environment by allowing the over 50s to take advantage of raised ISA limits this year. It's clear that 'silver saver' targeted savings accounts have a role to play in rewarding those who have saved all their lives and now need to boost their income.
"The Equality Bill is designed to benefit the over 50s - to support them in employment and reduce wider discrimination. There is nothing to be gained, however, from scrapping benefits extended to older people, such as bus and rail passes; the government has already placed these on the Bill's exemption list. Savings accounts should, in my opinion, fall in to the same category.
"If the Equality Bill were to outlaw benefits to older savers, there's no knowing where the withdrawal of benefits would end. Would the government begin taxing children's savings, for example? Or would we be forbidden to offer a specific account for children altogether? Our accounts seek only to help those that need it and target our traditional customers. We don't see this as a form of discrimination; we are serving the needs of our members.
"I hope that the future of the 'silver saver' account is not uncertain, and that this type of product will be exempt from the legislation".
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