F&C calls for Government incentives to save

Data published this week by the Office of National Statistics shows a significant fall in the household savings ratio.

According to the ONS the household savings ratio fell from 5.3per cent in the third quarter to 3.7per cent in the last quarter of 2006, the lowest level since the end of 2004. This data comes in the same week that the Investment Management Association released figures showing net ISA sales in February of £88m were down 40per cent from February 2006(£147m).

Jason Hollands, Director, Head of Communications for F&C, said this was another worrying signal that the Government was not doing enough to encourage a savings culture.

"The IMA data is very disappointing. It is vital the British public save up for retirement yet our own research shows that 70per cent of people do not think the Government does enough to encourage them to save.

"The Chancellor highlighted his commitment in the last Budget to encourage people to save more, yet his decision to raise the ISA allowance by just 3per cent was disappointing. Our research shows that more than 50per cent of the British public think the ISA allowance should be raised to £10,000 and some 21per cent that it should be doubled. The Budget was a missed opportunity."