The appointment of a new minister for pensions shows a welcome commitment on the part of policymakers to the issue of long-term saving.

We believe the new government might now go one step further, with the appointment of a savings minister – or, better still, the creation of an independent, apolitical post designed-specifically to champion and promote a savings culture across the UK.

Why a savings minister? Workers in Britain put less than a tenth of their wages into savings between April and June this year, less than their counterparts in nearly every other country in Europe. The European average is closer to 15%.

Too much cash?

Financial education is improving, certainly, but at the moment it is poorly co-ordinated and sends out mixed messages. People are still inclined to borrow rather than save when making major purchases, and those who do save are prone to holding inappropriate levels of cash to meet their long-term income needs. It is also far too complicated and difficult to invest, as a consequence we lose around three quarters of potential savers during the application process. Many simply do not feel sufficiently confident to invest in stock or bond markets and as a result have far too high a dependence on cash – our most recent Investor Pulse survey found that non-advised investors have a staggering 74% allocated to cash.

Layers of complexity

Equally, while there is positive momentum in the savings industry – the recent liberalisation has undoubtedly made pensions more appealing, while higher ISA limits and more flexible investment options are also welcome – the rules are still convoluted. Each change brings an additional layer of complexity to negotiate that may continue to deter potential investors.

A savings champion

The savings agenda needs to be more coherent. A new savings minister would transcend departments and be a positive driver for change to create a framework where it is as easy to save as it is to get into debt. We believe it would not increase bureaucracy, but would act as a way of streamlining the current system and depoliticising it, removing the habit of successive governments to tinker with the rules according to their short-term priorities. A savings minister could review the whole system, and also look at the unintended consequences for savers of introducing new legislation across government.

We believe this should help create trust in the industry. Savers, and by extension the savings industry, would have an advocate, a champion in the heart of government. This is not simply about pensions, but about cradle-to-grave savings and would incorporate everything from saving for a first home, to long-term care needs.

Saving benefits everyone. It ensures growth, stability and prosperity for the future of the UK and its people. It provides businesses with capital to grow, while ensuring that poverty in old age becomes a thing of the past and that people avoid the financial desperation brought by excessive debt. A failure to narrow the savings gap could adversely affect the UK’s GDP, so it is of critical economic as well as social importance.