The middle class are sleep walking into a debt crisis and the Government is failing to act, a leading City investment bank warned today.

Ministers must implement a "personal finance awareness" campaign to improve the financial literacy of middle England, according to JPMorgan Asset Management.

In a 40-page report that will be sent to the Department for Work and Pensions this week, the company says that with the effect of the credit crunch worsening, even well intentioned "middle Englanders" who save money regularly could still be at risk of problems in the future.

"There is undoubtedly a mounting personal finance crisis in 'middle England' - not just amongst those people already in debt, but amongst the seemingly well-off as well. Britain needs an urgent campaign to communicate a clear and universal message about what constitutes good financial planning," Jasper Berens, of JPMorgan Asset Management said.

The report says that the Government must help change the "nation's psyche" by introducing a five point plan similar to the "5 a day" healthy eating initiatives.

The company believes the that the following points need to be emphasised - arranging life and income insurance; building a rainy-day cash fund; the importance of paying off expensive debt; and how to start an ISA and pension.

Mr Berens said: "It is inconsistent that there are extensive government guidelines on a broad range of aspects of living including diet, exercise, smoking and drinking but absolutely none on financial wellbeing - even though financial security can have a knock-on impact on every other aspect of an individual's life."

Some key areas of concern that JPMorgan's report found include the "giant gap" between how much individuals are saving towards their pension and how much they would actually need to achieve their desired lifestyle in retirement.

It also said that many people are holding their savings in cash accounts rather than inflation beating investments; whilst other savings are being negated by servicing expensive debts.

Chris Tapp of money education charity Credit Action said: "Financial planning is an issue the Government needs to tackle across the social spectrum, since problems can hit those earning £15,000 or £100,000.

"Indeed we have found that it is the middle-income earners, who have access to credit cards and mortgages, who can actually have the least understanding of financial products and planning."