According to the union, recent “fragile” signs of recovery have coincided with a 43% fall in family saving, which is now at its lowest level in four years.

The TUC analysis showed that between March 2012 and March 2013 the proportion of income that families put away dropped from £20.1bn to £11.4bn.

Over this same period, consumer spending increased by 4.2% from £253.3bn to £264.0bn.

This in turn helped the economy grow by 0.3%.

However, had saving rates remained the same during these five quarters, household spending would have been £9bn lower and GDP £5.9bn lower.

The TUC said that this in turn would have seen the economy shrink by 1.3% and slip back into recession.

The union said that these findings highlight how ‘fragile the UK’s recovery is’ and warned that relying hugely on family savings to keep the economy going was ‘not sustainable’.

It said there needs to be more done to help boost households incomes to secure long-term growth.

Frances O’Grady, TUC general secretary, said: “This analysis shows that Britain’s fragile recovery is being propped up by families raiding their piggy-banks.

“While any signs of growth are welcome, it looks like recent news has been driven by running down savings and government propping up the housing market. This is hardly a sustainable route to recovery, and looks too much like a repeat of trends that drove the crash.

“A sustainable recovery needs to be based on growth, investment and a recovery in living standards. That’s why Britain needs a pay rise.”