Experts warn the situation is set to get worse for many, with inflation predicted to spiral from an already 40-year high of over 9% to 12% in the autumn
Nearly seven million people say they have “nothing left” to cut back on in the face of a looming wave of crippling energy price hikes, research has revealed.
The number warning that they have no financial slack rose to over one in four among low income households.
The sobering figures emerged in a new report from financial services giant Legal & General.
Millions of households are already in the grip of a cost of living crisis following a surge in energy, food and fuel bills.
But experts warn the situation is set to get worse for many, with inflation predicted to spiral from an already 40-year high of over 9% to 12% in the autumn.
One of the main reasons is a leap in energy bills, with a price cap set by regulator Ofgem forecast to rocket from £1,971 a year to over £3,500 in October.
Yet the survey by L&G found 13% of those asked – equivalent to 6.9 million people – felt they would have “nothing left to cut back on” in the face of future energy price increases.
That figure jumped to 28% among households with incomes of less than £20,000 a year.
The research also found that 69% are already being forced to make additional cutbacks on their household budgets
Just under half are concerned about being able to keep up with rent or mortgage payments over the next 12 months.
It comes as the Bank of England is widely predicted to increase interest rates from 1.25% to 1.75% this week.
If so, it would be the first time the Bank has…