Anne Snelgrove (Lab, South Swindon) introduced a ten minute rule Bill to make provision for the regulation of Christmas savings schemes.

She highlighted the need for regulation following the collapse of Farepak in 2006, which wiped out the Christmas savings schemes of at least 122,000 small savers. The introduction of the regulation would ensure that in future savers from such schemes would be protected by law.

Snelgrove highlighted the Civil Aviation Regulations 1995 as a model for regulation of the Christmas club and prepayment sector.

Speaking on the hamper industry’s move to self regulate with ring-fenced trust accounts Snelgrove said “Such measures are welcome, they are only short-term steps” and welcomed the government's decision to receive advice on a regulatory framework from the OFT and FSA.

She went on to talk at length of the impact on her constituents and others from the collapse of Farepak and the need to introduce regulation so that if a similar company collapsed, savers would be protected.

House of Commons

First reading: January 23 2008 [HC Bill 58]

Second reading: April 25 2008