The debate is over the speed at which rising interest rates are applied to savings accounts, and MPs have called for a solution to ensure that people's savings grow as fast as their mortgage repayments.
The Bank of England hiked the base rate from 4.5% to 5% last week, and the average easy-access savings rate is currently 2.35%, while the average easy-access ISA rate is 2.47%.
The chancellor has met with senior figures from financial institutions and is working on a solution to the issue.
LONDON DAILY ARCHIVE
Chancellor Jeremy Hunt Urges Banks to Pass on Higher Interest Rates to Savers More Quickly
The chancellor, Jeremy Hunt, has warned banks to pass on higher interest rates to savers more quickly, as some banks have made extra profits by charging borrowers close to the Bank of England base rate while paying out savings accounts at a lower rate.
27 June 2023 · 12:56 UTC
