RESEARCH by the Halifax suggests that despite Cash ISA balances reaching £4 billion higher than last year, there may be up to nine million savers who have not yet used any of their 2001/2002 Cash ISA tax allowances - even though they could afford to.

Halifax estimates the unused allowance from 2001/2002 alone may represent £200m in “potential tax savings foregone” which could be heading for the Exchequer next year rather than staying in the pockets of savers eligible for Cash ISA.

Savings figures suggest that although more than 40 per cent have no - or very little - savings, there are more than 16 million people in the UK who have more than £3,000 in savings.

Nigel Payne, head of savings at the Halifax, said: “Cash ISA uptake has been substantially stronger in 2001/2002 than in the previous tax year, which may be an indication of people’s concern about other forms of saving and investment.”