Many families close to breaking point

Around 22 per cent of people said the cost of living was now so high that they would be unable to cope if their bills rose any more, according to financial website moneysupermarket.com.

A further 30 per cent said an increase of less than £100 a month to their living costs would be enough to tip them over the edge.

Households have seen their outgoings rise by an average of £54 a week in the past six months, leaving them with just £247 a month to spare after they have met all their essential outgoings. Four out of 10 blamed their tight financial situation on the soaring cost of petrol, saying hikes in fuel prices had had the biggest impact on their spending in the past 12 months.

Around 23 per cent said the rising cost of food had hit their budget most.