More than ten million people in the UK have reduced their charitable donations in the first six months of 2010 and the total amount donated is down by 9.6 per cent, according to research conducted for Investec Bank.

Some 10 per cent of the population claim their donations have fallen by at least half compared with last year, and during the first half of this year 26 per cent of people did not donate anything to charities, according to the survey of 12,000 people aged 18 and over.

The figures reveal that only 10 per cent of the population increased their donations in the first six months of 2010 with 48 per cent of the population giving less than £50.

“Our findings suggest that in this age of austerity, charities are suffering from falling donations as people have less money. On top of this, many of the cash accounts targeted at them are paying derisory rates of returns,” said Investec spokesman Jack Jones.

"Given that charities have around 15 per cent of their assets in cash, they need to make sure that they are receiving a consistently good rate of return," he added.

In January the bank released figures stating that donations in 2009 were down by 10 per cent on 2008 with the average amount donated to charities in 2009 standing at £110.20 per person.

Last year £5.32bn was donated to charities and if the downward trend continues this year, 2010 could see as little as £4.81bn donated.

An Institute of Fundraising spokesperson responded: "It is clear that charities' income streams are still under pressure.  However, it could be interpreted as a positive sign that, in this research, donors are reducing, rather than cancelling charitable donations, and 10 per cent of those individuals are still in a position to increase their contribution to charity.  

"Fundraising at the moment remains a great challenge, although the economic situation could also offer opportunities for fundraisers as recognition for their valuable role grows."