12 million people in the UK are currently struggling to pay all of their essential bills, revealed The Reality Gap Report from protection specialist Bright Grey.

The report revealed that the average outgoing increased by £50 per month>

The situation may arise that they are likely to run into debt.

Additionally this figure rises to over 50% of the population if the cost of essentials increased by £100 per month.

Around 25% of people claim they can no longer afford all of their essential outgoings, including mortgage repayments and food.

A further 14% of people admitted their finances were so stretched that they would run into problems if their outgoings rose by just £50 a month, while 16% did not think they would be able to cope if they had to find an extra £100.

The research disclosed that essential bills such as food, housing costs, transport and energy bills account for 68% of household income and the average family spends £2001 on these essential costs of living.

Roger Edwards, proposition director at Bright Grey, who commissioned this research, commented: “The report reveals the average Brit is just £155 away from a money meltdown.”

"All it would take is a small increase in bills or drop in income for people to find themselves in trouble", he added.