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Households earning more than £100,000 a year were the only group that did not report an increase in hardship, research by Abrdn Financial Fairness Trust and the University of Bristol found. Some 71 percent admitted they have reduced the quality of food they eat while 36 perent have sold or pawned possessions.
Of one in six households struggling with rising energy bills, some revealed they are reducing the number of baths and showers or using the oven less.
Rocio Concha, Which? director of policy and advocacy, said: “The soaring cost of living is forcing many consumers to take increasingly drastic actions.”
“These figures reflect our recent research that found consumer confidence is at its lowest point since the pandemic.”
“The Government and businesses must ensure that targeted support reaches the ever-growing number of consumers who are struggling.”
Three-fifths of those questioned in the study said they had avoided turning on the heating while 24 percent said they heated only part of their home to cut spending.
Some 71 percent admitted they have reduced the quality of food they eat while 36 percent have sold or pawned possessions.
Just over a quarter said they had cancelled or not renewed insurance policies. The survey, of around 6,000 people between May 25 and June 6, highlights the impact on living standards as wages fail to keep pace with inflation.
Mubin Haq, boss of Abrdn Financial Fairness Trust, said: “This is the first substantial deterioration we have seen since the pandemic started.”
“Wages have largely stagnated and social security is lower in real terms than it was over a decade ago.”
“A more comprehensive and longer-term plan is needed urgently to ensure living standards do not sink further.”
Single parents, renters and parents with two children face the greatest rise in financial difficulty, the survey suggested.
Hard-pressed households in Wales, Scotland and the North-east reported higher levels of serious financial difficulty than average.
Experts warn that Government support – such as the £150 council tax rebate – may not be reaching those who need it most.
Families pay the price for failed energy firms
Failed energy suppliers could potentially add another £164 to customers’ bills.
A report from charity Citizens Advice found the bill for supplier failures, including administration costs for collapsed energy company Bulb, stands at £4.6billion.
This could result in households forking out an extra £164, it said.
Since last August, 28 energy suppliers have failed, causing turmoil for more than four million customers. Some report aggressive tactics from unregulated debt collection and receiving inaccurate bills as a result of poor data management.
The charity has called on the Government to “urgently review” how different outcomes of the sale of Bulb – which was propped up with an initial taxpayer loan of £1.7billion when it went bust last November – may affect customers.
