Briton’s savers have saved nearly a third of their salary on average in cash savings but Londoners save the least by a significant margin, the Halifax said on Thursday.

Halifax said the savings habits of its 15 million customers showed that while those who earned more had generally put more aside for a rainy day, Londoners were feeling the pinch and tended to save just 23% of average regional earnings.

Once earnings are taken into account Londoners replace the Scots as the lowest savers. People in East Anglia still save the most with balances equivalent to 38% of average annual gross earnings in the region.

Londoners have felt the pinch because a lot will be devoted to the cost of housing in the capital. And it's not just housing costs that are higher. Transport and other living costs are more.

Gender Differences

There is little difference in savings by gender with men having average deposit balances of £7,274, only 1% higher than average female savings of £7,184.

Women, however, save a much higher proportion of their income. The average savings balance for a woman is equivalent to 42% of average annual gross female earnings, compared with average balances for men that are equivalent to 24% of average annual male earnings.

Peter Jackson, head of savings at Halifax commented: "The recent Pensions Commission report emphasises the importance that people need to attach to planning to ensure that they have sufficient income in retirement. Savings play a key part in that planning process."

These figures, by their very nature, exclude people who have no savings. Figures from the ONS's Financial Resources Survey 2003-04 show that 27% of households have no savings.