RACHEL Reeves has called for Jeremy Hunt to do more to get banks to pass on rocketing interest rates to savers.
She has written to the Chancellor urging him to work with the Financial Conduct Authority to bang heads together at banks.
GettyRachel Reeves called for Jeremy Hunt to do more to get banks to pass on rocketing interest rates to savers[/caption]
She hit out after data showed that mortgage rates are rising by more than saving rates.
The gap stands at 1.65 per cent.
That could mean someone with £10,000 in savings missing out by an additional £50 a year compared to 2019, she said.
The shadow chancellor said: “Across Britain, people are being hit hard by the Tory mortgage penalty. Millions of households are paying thousands more a year and our economy is suffering.
“With interest rates going up across the board for mortgage holders, it’s only right that savers should get the bang for their buck they deserve.
“The Government should be working with the regulator and the banks now to make sure competition for savings is working.”
Government ministers have already called for banks to pass higher rates on to savers.
We’ll move beyond this cost of living crisis, says Rachel Reeves, Shadow Chancellor
By Rachel Reeves
BRITISH people have enormous ambition – and I’ve always believed a government should match that.
But right now, we’re being held back.
Along with the rising cost of the weekly food shop and bills ticking up, mortgages are going through the roof.
But they’re not the only things hurting working people right now.
High inflation is hitting people’s savings – and putting dreams like saving for a house, a holiday or even just a rainy day at risk.
It doesn’t need to be like this.
That’s why, as interest rates rise even further, we’re calling on the government to make sure banks are giving savers the interest rates they deserve.
People in Britain work hard for their savings, and shouldn’t have Tory economic chaos upend those plans.
I know we’ve got what it takes to strengthen our economy and shine on the global stage again.
When I travel across the country, I meet so many hard working people and brilliant local businesses.
That’s why we’ve got to tackle this cost of living crisis so people can get back on their feet again.
Last week, I set out a five point plan to ease the hit from soaring mortgages.
We’d do that by instructing – not just guiding – the regulator to require lenders to let struggling borrowers switch to interest only mortgage payments for a short time, or to lengthen the term of their mortgage period.
This will give them the breathing space they need to cope with the mortgage hikes we’re seeing – which are the result of Liz Truss’ kamikaze mini-budget, and Rishi Sunak’s managed decline of the economy.
The Tories own statement on Friday falls far short of this.
By failing to make measures mandatory, government plans mean 2 million households will miss out on the mortgage support they need.
Unlike the Tories, I have huge aspirations for Britain.
We have all the ingredients we need to create good, well-paid jobs, renew our town centres, and make, do and sell more in Britain.
With Labour in government, we’ll move beyond this cost of living crisis.
We’ll get security for family finances back, and unlock the talent and hard work in every village, town and city to build a better future for Britain.