An increasing number of Britons say they have no money to save because they are preoccupied with funding day-to-day expenses, a study has found.

Research published in the Scottish Widows Savings and Investment Report found that 75 per cent of Britons cited daily living costs as a barrier to saving, up from 67 per cent last year.

Anne Young, savings expert at Scottish Widows, said: "The rise in the number of people saying they have no money to save is alarming.

"It has become more of a priority for people to reduce their current debts and simply get by on a day to day basis rather than saving for their futures."

According to statistics published yesterday by Credit Action, one in 33 people who are currently in work could become unemployed during 2009.

In addition, the money charity states that one person is declared bankrupt or insolvent every 4.35 minutes, and someone's property is repossessed every ten minutes.