Legal & General’s latest MoneyMood survey shows over 1 million more households in the UK say they are struggling to pay bills than at the start of the double dip recession eight months ago.

There has also been a fall in the number of financially “stable” homes – those who say they have some money left over at the end of the month after paying bills and debts. This is now at its lowest level since Coalition Govt. came to power in 2010.

This is a significant downward shift in household finances in the UK, which had shown some early signs of improvement at the start of this year.

MoneyMood estimates 3.3 million homes are in danger of sinking into debt, unable to cover bills and debts from monthly income. The average monthly shortfall for these homes is £74. This indicates that across the UK the most financially challenged households are facing a national monthly shortfall of £244 million.

On a regional basis the highest average monthly shortfall is in the West Midlands at £108 per month.