Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of average savings held by (a) low-income households and (b) pensioners for meeting emergency or unforeseen costs.

The Government is committed to incentivising saving and investment, helping people to save for their future goals and build greater financial resilience. Individual Savings Accounts (ISAs) support people of all incomes and at all stages of life to save. The Help to Save scheme also supports low-income working households to start a long-term savings habit.

As part of its forthcoming Financial Inclusion Strategy, the Government is considering how households, including those on low incomes, can increase their financial resilience; and how people of all ages across the UK can build emergency savings buffers. In addition to savings, the Financial Inclusion Committee has discussed digital inclusion and access to banking services; access to credit; access to insurance; problem debt; and financial education and capability.

The development of the Financial Inclusion Strategy is being informed by a committee of industry and consumer representatives which I chair. Summaries of the Committee meetings are available on GOV.UK. The Strategy will be published later this year.

No assessment has been made of the adequacy of average savings.

The Government keeps all aspects of the tax system under review.