Tax treatment of savings and investments

Key Points

• The government spends £9 billion a year on tax reliefs for non-pension saving and this will rise by almost another £1 billion with the introduction of the Lifetime ISA. This is a regressive use of taxpayers’ money that only benefits people who can afford to save.
• Evidence shows that women, once they have children, are more likely than men to have little or nothing in the way of savings and investments. This is due to both immediate and persistent effects of the work-life balance they typically juggle in order to care for children and also frail adult family members.
• The £9 billion for savings-related tax reliefs would be better spent on improving the provision of affordable, good quality childcare, promoting flexible working and supporting unpaid work by both men and women.

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