Millions of Britons are failing to put money aside to cover an unexpected financial emergency, says Birmingham Midshires.

At a time when the economy is slowing and inflation is causing everyday living costs to rise, the findings from the Birmingham Midshires Saving Britain campaign suggest that the vast majority of Britons are experiencing increasing financial pressure.

Almost 70 per cent of people admit that they wouldn’t be able to afford a sudden spike in non-mortgage household bills, while 73 per cent believe they would face financial difficulty if their debts were called in.

Unlike the spendthrift generation, older Britons are most likely to be able to afford to pay off their debts – with one in three claiming they could cover this financial emergency, should it arise.

Tim Hague, head of savings and investments at Birmingham Midshires, says, ‘Compared with last year’s findings, it seems Britons are still not preparing themselves for financial emergencies. While none of us like to think about some of the emergencies our research has tackled, in the current economic climate it is even more important to have a financial buffer in place in order to cope with the unexpected.

‘We recommend people have at least three months' salary set aside for a "rainy day", and it is crucial that people take a proactive approach to their savings and hunt around for the account that best meets their requirements.’