A total of 1.6 million more households are struggling since the survey of 6,000 households was last reported nine months ago. It brings to 4.4 million – one in six – the number of households estimated to be facing “severe financial difficulties” across the population. The majority of them have reduced the quality of food they eat, a third have pawned possessions and a quarter have canceled insurance, the survey shows. Single parents, renters, people with disabilities and families with three or more children are most affected. Credit card debt is mounting and a quarter have zero savings. The only group with less financial strife from October 2021 is households with incomes above £100,000, according to the study by the Abrdn Financial Fairness Trust and the University of Bristol. Households affected by the cost of living “This is the first substantial deterioration we’ve seen since tracking people’s finances when the pandemic started,” said Mubin Haq, chief executive of the Abrdn Financial Fairness Trust. “Times are tough for everyone, but it’s those on the lowest incomes who are feeling the effects of rising prices the most.” The proportion of households considered safe has fallen from 38% to 31%, and Wales and Scotland are worst hit than England and Northern Ireland, with more than one in five households facing “severe difficulties” financially. The increase in spending is due to increases in energy bills, transportation costs and groceries, in that order. Last week, analysts predicted the energy price cap was on track to rise to £3,244 a year in October, when it will be adjusted immediately, from £1,971 a year. Annual supermarket inflation reached 8.3% last month. Increase in wholesale gas prices The three most common cost-cutting tactics during the survey period conducted from May to June were turning off the heating, reducing kitchen use and taking fewer showers and baths. Dean Byrne, 62, a semi-retired IT project manager in Stockport, Greater Manchester, told the Guardian his financial situation was “much worse” now than during the pandemic. He spends £620 a month on rent, which was recently increased by 5%, and £260 a month on utilities and council tax, but only receives £850 a month in universal credit payments. It is not enough and has used savings and some emergency payments from the council. Dean Byrne near his home in Stockport. Photo: Joel Goodman/The Guardian He is already more than £7,000 in debt, has sold his car for scrap metal, uses food banks and is eating less – particularly meat. He also walks for miles instead of taking the bus and has canceled TV subscriptions. Asked how he might heat his house this fall, he said, “I’m not really sure how I’m going to do that.” He no longer visits the pub or takes day trips to the beach. On his street after dark, the windows flicker with the light of only televisions as neighbors conserve electricity, he said. Last week, he went to the council because he is worried about becoming homeless. “I look at the calendar and count the days until I get paid again,” he said. “I have been working for 41 years. That has really affected me.” The percentage of households falling behind on at least one bill rose from 9% to 14%, the study showed. Faith Angwet from Southwark, south London. Faith Angwet, 37, a single mother of two from Southwark, south London, who worked in fashion and retail, said her weekly shopping bill had risen from £200 during the pandemic to £400. He has cut spending on toothpaste, soap and washing powder and uses minimal lighting at night. “If you open my fridge, it’s like a person lives in there, not a family,” she said. “It’s worse now than the pandemic. When I think about it, it’s enough to make my head explode. It’s definitely gloomier than before.”