The majority of British households feel financially overstretched, according to Icelandic savings provider Kaupthing Edge.

The bank’s research found that, due to increases in utility bills, food costs and travel costs, 45 million people in the UK (95%) are feeling the pinch. More than three quarters of the British public (77%) said their utility bills rose over the last six months, while two thirds (68%) recorded an increase in their food bills. Almost half of Brits (49%) said their travel costs have risen over the last six months. Furthermore, a third (31%) said they received a smaller pay rise or bonus than usual this year.

Ashley Whittaker, spokesperson for Kaupthing Edge, said: “With inflation now at 2.2%, more and more of Britain’s hard earned cash will go towards essentials such as utility bills and the weekly shop. While last week’s Base Rate cut may bring some welcome relief to Britain’s mortgage holders, our research clearly shows that the vast majority of Britons are still feeling the pinch.”