Direct Charity Payments Declining

Mr Gray said: "Our analysis shows that from April 2003 until the summer of 2007, there had been an overall fall in average monthly cancellation rates, which was a very positive trend.

"But that trend was abruptly halted and violently reversed after Northern Rock.

"Cancellation rates skyrocketed last summer so that, for example, in July, 54% more people cancelled their direct debits than in the average July for the pre-recession period, while in December, there were 67% more cancellations than for the average pre-recession December.