Millions of UK adults have cut the amount they are saving each month or abandoned saving altogether as the cost of living rises, according to a new report.

A quarter of all UK adults have dramatically reduced the amount they save in the last six months said Callcredit, the reference agency. In the report, it says that millions of adults are now regularly dipping into their deposits to make ends meet, as soaring food and fuel inflation continue to eat into the budgets of middle class consumers.

The report found that 40 per cent of adults could not survive for more than a month on their diminished deposits alone, rising to 53 per cent for 25-34 year olds. Financial advisers recommend an emergency pot worth at least six months salary in case of sudden unemployment.

The warning came as the Chartered Management Institute (CMI) released figures showing that more UK bosses were losing their jobs than at any point since 2001. The CMI said about 3 per cent of managers were being made redundant, double the numbers of a year ago.

However the survey, of 40,027 individuals in conjunction with CELRE, a leading publisher of salary surveys, did find a small increase in average earnings.

Mark Crail, managing editor at CELRE, said: “This year’s study reflects the uncertain economic climate as it shows employers reacting to tougher times, but trying to find ways to retain key personnel too."

Evidence of a fall in the amount that UK adults are able to save follows reports earlier this week from debt charities that more middle class adults are seeking their advice than ever before.

The official government measure of inflation hit 3 per cent last month, but unofficial estimates have suggested that prices of food, petrol and utilities are climbing more steeply.

Owen Roberts, of Callcredit, said: “These findings are a stark illustration of how the credit crunch is already affecting consumers, it’s clear that the rising cost of everyday living is having an immediate impact on our ability to save. Many UK workers are at what could be described as a financial tipping point where just one unexpected unfortunate incident could have dire financial consequences."

The CallCredit report also found that a growing minority of UK adults were overburdened with unsecured debt. One in 20 admitted spending half their salary on repayments on loans and credit cards, double the figure in September 2007.