British consumers keep a shocking £4.6 billion in cash stashed around their homes, according to new research from house insurance company Cornhill Direct.

More than three quarters of the public admitted to stashing cash in various hiding places around their homes, from drawers and tins, to more inventive locations such as the freezer. The average Brit hides £127, although eight per cent of the sample admitted to hiding between £300 and £1,000.

Although one in ten had misplaced some cash in their home, 40 per cent were of the opinion that storing money in the home is a good idea, with 45 per cent expecting the practice to increase following the recent shenanigans at Northern Rock.

While four per cent admitted that they just did not trust their bank or were unhappy with charges, 13 per cent said they kept cash as a reserve fund while 45 per cent said they liked to keep a little money aside incase they needed to make a cash purchase.

Mark Bishop, of Cornhill Direct, said: "Our home contents policy provides protection for money kept in the house, but it is never a good idea to keep large sums in the house."

According to the Alliance Trust Research Centre, young adults under 30 now feel inflation rates as badly as the over 75s, the two groups being the most pressurised by increasing costs of living.

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