PEOPLE living in the North of England are Britain's best savers, it was revealed today.

Almost half the people in the region saved money each month.

That compared to only a third of those in Birmingham, who are the least likely to set money aside.

Just under half of people in the North said they regularly saved money out of their monthly income during 2005.

People in the South East, East Anglia and Merseyside are also keen savers, with 45% of the population in these regions regularly setting money aside, compared with only 38% of people in Greater London and 40% of people in the South West.

Tyne and Wear has seen the biggest increase in savers during the past two years, with a 6% jump in the proportion of the population saving since 2003 to 43%, followed by Scotland where numbers have increased by 4%, to 44%.

But during the same period the level of people regularly paying money into a savings account in Birmingham, Greater London, Manchester and the Midlands has fallen by 2%.

The main reason for saving in all regions was to pay for a holiday, with the Welsh most likely to be saving for this at 30%.

The Welsh were also more likely to be saving towards buying a car than other regions, with 12% of people setting money aside to buy a new motor.

But only 4% of people in Wales and 3% in Tyne and Wear were saving towards their old age, compared with 12% of people in Greater London, the South East and East Anglia.

Around 8% of people in Tyne and Wear and Birmingham said they were setting money aside for their children, while the same proportion of people in the South East and East Anglia were saving towards a buying a house.

Just under one in 10 people in Manchester, Yorkshire and Humberside and Tyne and Wear were saving towards the cost of carrying out home improvements, while people in Merseyside were more likely to be saving towards a special event such as a wedding, at 16%.

Alexia Kilby, Abbey's head of savings marketing, said: "While we understand that not everyone can afford to save a regular sum of money each month, the sooner people can try to get into the habit of putting away a regular amount, no matter how small, the better placed they will be to find their savings of help in later life."