Record numbers of families are spending over £2,500 a-year more on increased utility bills and higher mortgage payments, according to research published today by comparison site comparemoreatdixons.co.uk.

The study revealed that housekeeping budgets have been left so tight by price rises that six out of ten are spending less on food in an attempt to limit their spending. Over one in ten (13 per cent) admitted to being out of pocket by up to £400 per month whilst over a third (35 per cent) are facing each month with up to £250 less. Five out of ten respondents are having to reduce their spending by more than ever before in order to make ends meet.

Last year’s interest rate rises have also been identified as having a big impact. One in four respondents (25 per cent) revealed that higher mortgage rates and credit card bills have reduced their spending power.

The study revealed that Brits are increasingly shunning the high street and shopping online for bargains as they try to make ends meet. Over a third of respondents (36 per cent) revealed they would be turning to comparison sites as a way to help save money.

Whilst nearly one in ten (9 per cent) respondents even plan to stop smoking, the study revealed that millions of British shoppers find some products such as eating out and booze slightly harder to give up. A quarter of respondents still plan to eat out whilst going to the pub is set to remain a popular activity for over 10 per cent. Keeping up appearances was also viewed as a necessity with clothes and make-up continuing to remain significant sources of expenditure.

Despite eight out of ten respondents looking to cut back on spending, having less disposable income is expected to have a severe impact on the financial stability for millions of Brits as they struggle to make ends meet. Nearly two in ten of the respondents questioned admitted that they will spend more than they earn leaving them facing the prospect of ending the year in significant debt. Over a quarter (29 per cent) also admitted that they will be plundering savings accounts in an attempt to make up the shortfall.

Mark Adams, Ipswich, comments: "We’ve noticed over recent months that our money just isn’t going as far as it used to. The next payday can often seem like a long way away and it’s really forced us to look at what we spend our money on and how we spend it. Where we were really able to make some savings was on the general household and insurance bills, which you tend to take for granted. We saved enough money to get ourselves a new TV and games console"

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