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Labour Party Chancellor Rachel Reeves is facing calls to remove the £50,000 cap on Premium Bonds. The Labour Party Chancellor is being urged to tackle Britain’s growing debt by making a change to National Savings and Investments (NS&I) Premium Bonds.

If NS&I, which is backed by the Treasury, made the move, could raise £1 billion. There is currently £130 billion held in Premium Bonds.

The current Premium Bond rate of 3.6 per cent would therefore be cut to 2.8 per cent under the proposals, as the current Bank Rate is 4 per cent. Tim Leunig, an economist at the London School of Economics (LSE), told The Telegraph: “We know historically that people don’t cash them in if the rate is roughly 70pc of [the] Bank Rate.

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