Research from the UK’s financial services regulator has found that 10 per cent of Brits have no cash savings at all.

Data from the Financial Conduct Authority (FCA) also reveals that 21 per cent of people have less than £1,000 to draw on in an emergency.

The financial watchdog said that a further one in four people in the UK have low financial resilience, which means that they have missed payments, are struggling to keep up with commitments, or don’t have savings to help them through difficulties.

However, it said that when consumers seek support it makes financial pressures more manageable.

According to the regulator, of the 1.7 million people who used a debt advice or debt management service in the previous 12 months, 61 per cent said their debts were more manageable as a result.

The FCA said that there has also been progress on access to basic banking services, such as an increase in consumers who hold current accounts and a reduction in people being denied basic bank accounts.

There are also more people banking online or with a mobile app, with 1.2 million adults (two per cent) digitally excluded, down from 6.9 million (14 per cent) in 2017.

61 per cent of people with more than £10,000 in investible assets held at least three-quarters of these assets in cash, rather than investments, with the FCA saying it wants to see more people holding mainstream investments to improve long-term returns.

One-third of adults with a defined contribution pension also currently have less than £10,000 saved.

“Our data shows that finances are stretched for many - with some unable to save for a rainy day," said Sarah Pritchard, executive director of consumers and competition at the FCA. "And we know that some do not have the confidence to invest.

"But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.”

The FCA said it is helping consumers through new rules for a new form of support so that consumers can be guided on how to make the most of their pensions and to invest with greater confidence, without taking costly personalised financial advice.

As well as this, the organisation is helping the government develop a national plan for financial inclusion and scrutinising the insurance sector so that people get fair value on things like premium finance or pure protection.

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