THE CHANCELLOR needs to go beyond raising the annual cash Isa limit if he is to encourage households to save more in the budget, say investing professionals.

The call comes as savers continue to suffer huge falls in monthly income from their nest eggs as interest rates fall with the Bank of England base rate.

The Treasury also recently dismissed the idea of scrapping basic rate tax on savings income.

The chancellor is expected to raise the cash Isa limit from its £3,600 annual threshold next week, but the Tax Incentivised Savings Association (Tisa), a group made up of investment professionals, has said more needs to be done to help families set more of their savings aside.

It recommends allowing employer contributions into Isas and permitting the transfer of Isa holdings between husbands, wives and civil partners following death – without loss of the Isa's tax-free status.

Child trust funds should be automatically transferred into an Isa on maturity and the new Savings Gateway accounts, intended to help those on lower incomes to save, should also be transferred into an Isa after the two-year contribution period is up.

Finally, Tisa argues the Government should agree to the direct transfer of 25 per cent of tax-free pension drawdowns into an Isa, outside of the individual's annual subscription limit.