Eight out of ten Britons do not have enough savings to be able to cope with a financial emergency, research showed today.

About 82 per cent of people said they did not have enough money set aside to be able to meet unexpected costs, such as losing their job or having a child, according to Birmingham Midshires.

Of those who said they did not have sufficient savings to cope with an emergency, 88 per cent said they would be unable to support their families if they were made redundant, even if they were only out of work for a short period of time.

Almost nine out of ten people said they could not afford the cost of having a child if their partner became pregnant and 82 per cent said they would not be able to pay off their debts if their creditors called them in.

About 94 per cent of those questioned also said they would be financially crippled if they had to support an elderly relative during retirement.

Tim Hague, of Birmingham Midshires, said: "It is alarming that so many people could struggle if hit by a financial emergency or unforeseen cost. We are concerned about people's liquid wealth - the money that should be available to them in a financial emergency.

"Much is talked about the need for saving for the long-term but without an accessible savings pot set aside for that rainy day, short-term financial costs can leave families with severe difficulties."