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DWP figures show Govt is failing to encourage more saving

Despite Government pled-ges to encourage more savers, latest figures from the Department for Work and Pensions show that households are still not saving money.

Statistics produced by the Family Resources Team for 2000/01 for the DWP&#39s ninth annual report were gathered from 25,320 private households.

The results back industrywide predictions that the Government&#39s initiatives to encourage more people to save are not working, with figures suggesting that 56 per cent of households have less than £1,500 saved or no savings at all.

It shows that although 93 per cent of households had at least one type of saving or current account, 88 per cent only held a current account.

The numbers of households still relying on benefits is also evident, with 69 per cent claiming at least one family benefit.

The most commonly claimed benefits are child allowance and the state pension.

The results show that 29 per cent of non-registered carers live in a household where the main source of income is social security benefits.

Yorkshire Building Society product support manager Helen Chapman says: “I think this savings figure is surprising but we do try to encourage more savers from lower-income groups by introducing lower starting balances of around £100 for savings accounts and products such as bonds and Isas.”

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