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The Tax Incentivised Savings Association has urged the government to help create a national savings strategy.

In its pre-Budget submission to the Treasury, Tisa outlined its vision for a savings culture which it said can be achieved by adopting a "joined-up" approach to the range of savings options available to meet lifetime needs.

Tony Vine-Lott, director general for Tisa, said: "The stark reality is that the savings ratio is at an all time low and this must be addressed by all of us in the industry and by government. I believe that by enabling the consumer to see how options for savings link together and by increasing the use of the Isa model, we have an opportunity to make a real difference very quickly."

Tisa's recommendations include development of a "workplace" Isa, as an alternative to personal accounts and transferring Isa savings and investments, without leaving the Isa wrapper, on death of a spouse.

Mr Vine Lott said: "Isas are a particularly attractive option for those on low incomes who are unwilling to lock their money away in a pension fund."

The association is also optimistic that child trust funds will benefit future generations and has proposed an enhancement. It has said it would like to see an increase in the initial payment to £300, to counter the effects of inflation and for the amount to be index linked.

It is also in favour of the introduction of a third child trust fund payment at secondary school age.