PM Brown Announces Measures To Improve People’s Finances
As the UK economy lurches towards recession, Gordon Brown is expediting measures aimed at improving the finances and lifestyles of people - especially those with low incomes.
Gordon Brown has brought forward a number of measures designed to improve people’s finances and lifestyles. Conservative leader David Cameron accused him of stealing his party’s ideas.
The first measure is to bring forward a plan to make new homes which haven’t sold available to tenants from housing associations. A fund of £200m would be used to buy the homes and rent them out to social tenants, or offer them for sales as part of shared-ownership schemes.
The current mix of still-high house prices and increasing mortgage costs has made life more difficult than ever for prospective first-time buyers, and the Prime Minister has come up with a plan to offer shared-equity housing to new buyers, but with a limit based on the household’s income.
The current shared-equity scheme, in place for key workers, will be broadened to include those with low incomes, backed by a fund of £100m.
The banking system is to be subject to a Banking Reform Bill, with the objective of underpinning the system to protect depositors. Primarily prompted by the collapse of Northern Rock, changes were made to the Financial Services Compensation Scheme, which, since October 2007 has afforded total protection on deposits of up to £35,000 per customer, an improvement on the previous scheme.
A Saving Gateway Bill will provide a savings scheme for those on low incomes. To come into effect in 2010, the Gateway will top up every pound saved by eligible savers with an as yet unspecified amount from the government. Around eight million people on tax credits and benefits could be eligible.
Prime Minister Brown also said that flexible working for parents with older children will be moved forward. At the moment parents are able to request flexible hours if they have children under six, but this has been subject to an independent review. Mr Brown says that consultation on the details of implementation will proceed with a view to introducing new rights in April 2009.
