The amount people spend on bills and living costs has soared from an average of £945 in June 2006 to £1,281 now, according to insurer Combined Insurance.

Consumers are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30% and mortgage repayments jumping by 33%.

At the same time households claim they are spending about 32% more on gas and electricity at an average of £90 a month, while other everyday bills such as television subscriptions and water rates have risen by 30%.

Council tax has increased by 22% during the past two years to average £90 a month, while car running costs are 34% higher and spending on food has risen by 20%

Families with children have been particularly hard hit, with their average expenditure on child care soaring by 77% during the past two years, while other spending on children, such as clothes, has risen by 37%.

But there are areas where people have cut back on their spending, with households now spending about 8% less on insurance than they were in 2006, while telephone and broadband costs have fallen by 7%.

Nigel Brittle, director of Combined Insurance, said: "The many cost of living hikes are taking their toll on the monthly budget and many Britons are living on the edge with their finances."

YouGov questioned 1,983 people during May.