The number of households saving money has fallen dramatically over the past year. At this time last year, 50% of people tried to save some money each month. This year, 85% of people have said they have nothing left at the end of the month to put into savings.

Scottish Widows surveyed a number of people and called the results ‘alarming’. The lack of savings is put down to a difficult economic climate culminating in unemployment and pay freezes.

75% of families have said that daily living costs were preventing them from saving, up from 67% last year. 42% of families said that debts prevented them from saving, up 10% from 2008.

Half of those surveyed said that they would be more encouraged to save more money if there was tax relief on all savings. This year’s Budget has gone some way to helping, announcing that the maximum amount allowed to be invested into will increase from October for the over 50s and April for all other savers.

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