Consumers approach financial breaking point

This is according to which found that the average weekly spend has risen by £54 per month for UK consumers.

More shockingly, almost a quarter of those surveyed (22%) say they would be unable to cope if their monthly expenditure was stretched any further, as the cost of living has now become too high for them.

Aside from rising living costs, inflation is also having a huge effect on the nation's savings pots. To beat inflation, basic rate tax payers now need an account paying at least 5.63% to gain benefit in real terms from their savings, increasing to 7.51% for higher rate tax payers.

Kevin Mountford, head of banking at said: "Consumers are not only battling rising day-to-day costs and a reduced level of disposable income, many are also having to deal with pay freezes, which means in real terms, their incomes are being reduced.

“Many families will feel like their finances are approaching breaking point, however, there are still small steps they can take to help them save some vital pennies."

The research also revealed that four in ten adults (40%) have found the soaring cost of petrol, which has already seen a litre rise to above £1.33 for the first time ever, has had the biggest impact on their spending and budgeting over the last 12 months. A quarter (23%) of adults say it is the rising cost of food and two in ten (19%) say it is the rising cost of paying for utility bills such as heating which is causing the biggest strain.

Mountford continued: "For families struggling with day-to-day costs, spending wisely, using discount vouchers and shopping around for the cheapest deals on their borrowing and household bills should all be top priorities at the moment.”