Successive cuts in interest rates have hit savers in the pocket, but one organisation, with a branch in the North-East is fighting back. Stuart Arnold reports.p IT is remarkable to think that base rates back in October were at five per cent. Now several cuts later they sit at a new record low of only half of one per cent and are expected to remain unchanged, possibly for several months.

The cuts by the Bank of England were aimed at kick-starting an economy spiralling into a recession, while keeping inflation under check.

For borrowers, they have been great news with the cost of mortgage payments coming down.

But for savers it has only meant pain, with banks and building societies slashing interest rates leading to miserly returns on many accounts.

Pensioners, many of whom rely on savings for their income, have been particularly hard hit.

The National Savers and Pensioners Union (NSPU) believes all savers have been getting a raw deal and wants guarantees from the Government of a “worthwhile return” on the average savings account.

It also wants all savings and pensions to be made exempt from tax and a standalone Government minister to be handed the task of looking after savers’ interests.

The organisation, which has a regional branch in Skelton, east Cleveland, recently took representatives to the Bank of England, in London, to demonstrate and it was there again during protests on the day of the G20 summit.

A demo outside the nownationalised Northern Rock headquarters, in Newcastle, has also been mooted.

Kevin Bradshaw, from the NSPU, said: ‘‘We’ve been saying for a while that savers and pensioners are getting a raw deal.

‘‘Their money is being used without their permission to go towards all sorts of things such as bonuses and bail outs.

“Banks and building societies pay themselves astronomical salaries and bonuses amounting into billions of pounds, year after year, using peoples’ savings.

‘‘Our message is that the only way pensioners and savers can get control of their money again is to join together as one organisation.’’ The NSPU says it is nonpolitical, its only interest being to “look after people’s money”.

It is also actively looking to recruit new members and describes itself as an organisation not just for pensioners, but the young and middle-aged as well.

Mr Bradshaw said: “It is our fundamental rights as savers, from cradle to old age, to have a positive worthwhile return.

“All the money in the world belongs to the savers.

It is a dammed disgrace that we are getting no return on our savings.”

He added: “If the Government wants low interest rates for whatever reason, we will not stand in their way.

“However, at the moment, banks and other institutions have our money for virtually nothing and we shouldn’t have to accept this.

“Why should the saver always be the loser?”

For more information, go to nspu.org.uk