The Conservatives and the Confederation of British Industry have accused Chancellor Gordon Brown of doing nothing in last week's Budget to get people to save.
Both Shadow Chancellor Michael Howard and CBI director general Digby Jones expressed grave concern about the state of UK savings at the ABI's annual conference.
Jones said one of his biggest worries is that there is nothing to motivate young people to save and the Government has failed to take action in this year's Budget.
Howard said that the savings ratio under Labour has plummeted, dropping from 10 per cent in 1997 to 4 per cent this year.
Jones echoed this point, saying this was the lowest rate of any member country of the Organisation for Economic Co-operation and Development.
Howard said: “People will not get the benefits they want if they do not save and it is the Government's role to devise the appropriate framework to encourage people to save. This Government has not done that.”
Jones said: “One of my biggest worries is that young people are not saving at all for their retirement and even more are not saving enough.
“Nothing I have seen from the Government has done anything to get more people to save. In the Budget, not one penny went into getting young people to save.”