According to a new report, the nation has seriously cut back on non-essential purchases despite the fact they would have paid for similar items without thinking twice in pre-crunch Britain.

The areas that have been hit the hardest are new clothes (42%), dining out at restaurants (30%), and getting new things in for the home (29%).

Duncan Jennings, co-founder of VoucherCodes.co.uk, authors of the report, said: “It is worrying to see how households have been backed into a corner and now need to deliberate over even small purchases like a meal out or a cinema ticket.

“But while consumers have had to adjust to living within their means, this does not have to mean reigning in all expenses and lowering their quality of life.”

Consumers have seen their spending power hit as inflation remains high and incomes continue to stagnate.

For a family of four, a night out at the cinema can cost over £60 including a few snacks. Brits are being urged to shop around to find deals that will allow them to make the most of their squeezed budgets.

Jennings added: “By taking some time to browse online for discounts and deals, savvy shoppers can still treat themselves to some nonessential spending without breaking the bank.

“There is no doubt that over the past five years, consumers have been struggling in an uphill battle against the rising cost of living. But by shopping smartly and joining the online voucher revolution, households can enjoy significant savings.”

Here are a few ways for struggling parents to keep the kids entertained this half-term on a budget – How to save money this half-term.