A Financial Inclusion report by the Centre on Household Assets and Savings Management (CHASM), which is part of the University of Birmingham, found that nearly a quarter of people would be unable to find £200 in an emergency. One in six said they would have to borrow the cash, with a further 8 per cent saying they simply could not pay.

The report finds those at the top of the pile have seen a marked improvement in their financial situations, but things are getting worse for people at the bottom.  Most people still have to cut back on their spending.  Despite rising employment, earnings remain low.

In an article in today’s Independent, Karen Rowlingson, professor of social policy at the University of Birmingham, is quoted as saying: “We are experiencing a three-speed recovery.  A lucky minority at the top are steaming ahead, benefiting from the current low interest rates and the return to growth to increase their savings. Those at the bottom are going into reverse, really struggling and getting further into debt.”