Just one in 10 (10%) people believe the economy will improve over the next 12 months – and nearly three-quarters (74%) think the situation will get worse, according to Which?

The consumer group, which commissioned a survey of 2,000 people, said overall confidence levels are their lowest since October 2020.

More than half (54%) of people said their household has had to make a financial adjustment – such as cutting back on essentials or dipping into savings – to cover essential spending in the past month.

One in 20 (5%) consumers said their household had missed a bill payment.

The most common types of missed bills were energy bills, phone bills, and water bills.

Our research shows how a relentless cost of living crisis is putting huge pressure on household finances - with confidence in the economy at its lowest level since 2020

Six in 10 (61%) of those who reported missing a bill payment had missed more than one.

Which? has launched a cost of living hub on its website to offer tips on how to save money on household bills.

Its consumer rights expert, Adam French, said: “Our research shows how a relentless cost of living crisis is putting huge pressure on household finances, with confidence in the economy at its lowest level since 2020.

“This is particularly worrying as price hikes and inflation are only predicted to rise further in 2022 – even after the April increases take effect.

“Ahead of the spring statement, the Government and businesses must urgently take action to support those who could quickly find themselves in serious financial trouble if the economic situation deteriorates further.”