The Savings Gap - the difference between what we are saving and what we need to- save, could be eliminated for less than the cost of a pint of lager and a packet of crisps each day.

That’s the view of Savings and Investments provider, Halifax who points out that to bridge the £27 billion gap, each household would need to save an extra £1,100 each year, or about £3 a day.

The Savings Ratio, which measures the level of Gross Saving against Total Household Resources (income), stands close to an all-time low at 5.7 per cent (Source: ONS). This represents average Gross savings of just £1,784 per year for each household in the UK. This level of saving has seen the Savings Gap – the difference between what we are saving and what we need to save, reach an estimated £27 billion pounds (Source: ABI).

The research by Halifax Financial Services looked at the Savings Ratio for the past 40 years, considering the historical peak, 12.4 per cent in 1980, and the long-term average, 8.04%. These figures were taken and compared to current levels of Household Resources in order to calculate the additional saving required to redress the balance between current and historical levels of saving.

Since 1963 the average level of the Savings Ratio is 8.04%, or just over £2,500 per household per year based on current levels of Household Resources. To meet that level of saving, UK households would need to save just £1.97 extra each day, or less than the cost of a pint of beer. Each UK household saving just £59.97 more each month would generate an extra £17 billion pounds every year narrowing the gap dramatically.

During the same period, the peak level of savings, 12.4%, occurred in 1980. To replicate this level, households would need to save £3,863 a year, or about £5.80 a day. In doing so UK households would accumulate £50 billion pounds more each year, almost double the Savings Gap in under 12 months.

Over the past twenty years, patterns of saving in the UK have, to a large extent, mirrored both inflation and interest rates. Although during the mid-90's, savings rose against a background of falling inflation and interest rates. This change does, however, match with the fall in house prices.

Source: ONS/Halifax House price Index

The increase, in savings levels between 1991-1997, reflects the fall in borrowing caused by the collapse of the housing market. As confidence returns to the market at the end of the 90's, prices increase, mortgage lending increases and the amount saved falls away to near the all-time low.

Commenting Ray Milne, head of Halifax Financial Services, said, "These figures show that while the Savings Gap stands at an alarming level it can be tackled. With some simple financial advice £90 per month extra savings should be manageable for the majority of households in the UK."

Nick Robinson, head of Savings at Halifax, also commented, "We have seen already this year that there is an appetite to save among adults in the UK with the fantastic success of our Regular Saver account, with the average monthly amount saved being over £190. These figures show that with encouragement the gap between what we are saving and what we need to save can be bridged without the need to tighten our belts too much."