Britons are being left with no spare money to put away in savings accounts because of the high cost of living, a new report has warned.

A study conducted by the Post Office has revealed that many of those who do make efforts to squirrel cash away end up withdrawing it soon afterwards.

Richard Norman, director of savings at the organisation, highlighted that millions of people have no "savings safety net" to help them if they find they are in financial difficulties.

"In times of economic uncertainty, it’s more important than ever to try and put money away," he urged.

Research conducted last week by financial comparison website moneysupermarket.com found 30 per cent of Britons are concerned that the cost of living now prevents them from coping financially much longer.

Tim Moss, head of loans and debt at the site, stated that although debt levels are rising, Britons’ ability to manage such obligations is declining.