Delivering cost-effective debt financing to the Government remains NS&I’s core objective. At the March 2017 Budget, our Net Financing target for 2017–18 was set at £13 billion (in a range of £10 billion to £16 billion).
NS&I is reducing the interest rate on its Direct ISA by 25 basis points from 1.00% tax-free/AER to 0.75% tax-free/AER from 24 September 2018. The decision to reduce the interest rate on Direct ISA was taken in order to deliver positive value for taxpayers.
Tax-Free Childcare is a new government policy led by HM Revenue and Customs (HMRC), which offers financial support for childcare for working parents. Thirty hours free childcare is a Department for Education (DfE) policy and an extension for working families of the existing 15 hours free childcare for three and four year olds in England.
Think Ahead has been a successful strategy. Since the start of 2014–15, we have delivered more than £50 billion in Net Financing for the Government; and cumulative savings of more than £780 million for taxpayers, as shown by the Value Indicator.
2017–18 has been a very successful year for NS&I. The organisation met all of its performance targets and raised £9.8 billion in Net Financing for the Government (against a final target of £8 billion in a range of £5 billion to £11 billion).
NS&I is reducing the maximum purchase limit for new sales of 1 and 3-year terms of Guaranteed Growth Bonds and Guaranteed Income Bonds, from £1 million to £10,000 (£20,000 jointly) from today (11 June 2018).