A new inquiry will be launched today into how Britain's levels of personal debt can be reduced and a savings culture developed.

Chaired by Lord Griffiths of Fforestfach, the former head of the Downing Street Policy Unit, the commission will be independent of the Conservative Party, but will report to shadow chancellor Oliver Letwin.

Tories will today warn that household debt is about to break through the trillion-pound barrier.

The full membership of the commission is expected to be announced tomorrow.