GOVERNMENT incentives to help people save need a shake-up so families can build resilience against financial shocks, a leading think tank urged today.

The Resolution Foundation warned that low to middle-income households struggle to build up cash reserves, with adults in the bottom half of income distribution typically having just £3,000 in savings each. 

Savings allowances and Isas are progressive, its report said, with basic-rate taxpayers able to earn up to £1,000 in savings interest untaxed, compared with £500 for their higher-rate peers.