“Finally, the Government has recognised that savers and pensioners need help too during the recession.

“The ISA allowance extension is the first piece of good news savers have received all year, and the fact that it will be fast tracked for those over 50 will be particularly welcome to those who rely on ISAs for tax free income.

“Other good news for pensioners is the fact that the first £10,000 of savings will not be taken into account when assessing their entitlements to things like Pension Credit and other benefits, which should further encourage pensioners to save.”