Political Editor - Protection for Christmas Savers

SALTER SUPPORTS NEW PROTECTION FOR CHRISTMAS SAVERS

Reading West MP, Martin Salter, has sponsored a House of Commons Bill to regulate Christmas saving schemes, and protect the money of savers. The Bill would avoid any repeat of the devastating collapse of Farepak, which wiped out the Christmas savings of over 120,000 people in 2006.

Mr Salter is one of ten MPs’ sponsoring the Ten-Minute Rule Bill introduced on Wednesday 23rd January by Anne Snelgrove, Member of Parliament for South Swindon. The Bill would mean in future all savers’ money is protected by law, and would work in a similar way to the protection of money spent on holidays in case an airline company or tour operators go bankrupt. While there is already a voluntary regulation system for Christmas saving schemes set up by the government, the protection for the consumer is dependent on the scheme choosing to be regulated.

At the time of the Farepak collapse Mr Salter called on the then Prime Minister Tony Blair to intervene to regulate Christmas savings schemes, and also hosted a House of Commons seminar aimed at investigating how the government could protect low-income savers. This month Mr Salter also attended the Parliamentary launch of a new Post Office Christmas savings scheme, which also offers protection to savers.

Mr Salter said:

“I am delighted to sponsor this important Bill, which would help avoid the miserable Christmas Farepak savers in Reading and across the country faced when the scheme collapsed in 2006. People who carefully put money aside all year to pay for gifts and food for their families should have the reassurance of knowing that their savings are protected.”

Speaking in the House of Commons Anne Snelgrove said:

“It is the only solution, because without regulation we cannot be assured that something this devastating for low-income families determined to keep out of debt will not happen again.”

The Bill is now due to receive a Second Reading in the House of Commons on Friday 25th April.

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