'One in four British families have just £95 in savings'

One in four British families have just £95 in savings, according to a new report.

Research by insurers Aviva show savings for the country’s worst off families have fallen to the lowest level in 18 months while the rich are keeping more cash aside.

It said low income families, which receive net monthly earnings below £1,500, now typically save just £95 compared to £136 last year.

Aviva say one in four British families come under the low income category.

Meanwhile, high earning families have increased their savings from £50,208 to £62,885.

The insurance firm suggested the fall in home ownership and inflation fears had contributed to the widening inequality gap.

Paul Brencher of Aviva UK said: “The gulf between low- and high-income families is showing signs of widening, in a worrying indication that those less fortunate are finding their finances increasingly stretched.

“While high income families have been able to increase their savings pots, those with low incomes have seen theirs fall to less than £100.”