Fitzpatrick also expressed his view that employees who want to save a bit more each month should not be prevented from doing so.
In the letter sent earlier this month he outlines HMRC statistics that more than 80% did not save their maximum ISA allowance by April 2012 and yet ISA limits continue to be raised. He wrote: "This evidence completely undermines the Treasury line that savings limits cannot be increased due to take up rates."
Fitzpatrick also points out in the letter that savings limits for the Save As You Earn (SAYE) have not been increased since 1991. "If they had been increased in line with inflation the monthly savings limit would stand at almost £500 today," he wrote.
Likewise the maximum limit for the Share Incentive Plan (SIP) has not been increased since the scheme was introduced in 2000.
Fitzpatrick's view is shared with ifs ProShare. Special adviser to the ifs, Phil Hall told HR magazine: "The Government on one hand want to encourage people to save yet on the other are imposing limits, the whole thing seems rather perverse."
"Ifs have been calling to raise the limits for five years now and with the Liberal Democrats announcing it as one of their policies at the party conference this year, it seems we are getting closer."
Hall added: "Another thing to highlight is we're not talking about high earners but average earners - the exact type the Government are trying to encourage to save."
