Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to increase the personal savings allowance.

The Government’s savings tax policy rewards savers by incentivising greater saving and investment. On top of the normal Personal Allowance, the Personal Savings Allowance allows up to £1,000 of tax-free savings for basic rate taxpayers and up to £500 for higher rate taxpayers. Over and above that, individuals can also save up to £20,000 into an Individual Savings Account (ISA) each year, and any savings income received on cash within an ISA is tax free. Combined, this means that around 90% of people with savings income pay no tax on that income.

As with all taxes, we keep the level of the Personal Savings Allowance under review, and any changes would be made at a fiscal event.