British consumers are being put under pressure by sky-high utility bills, with three-quarters of income being spent on heating, water and electricity.

The Lloyds TSB Spending Power report showed that 46 per cent of people are left with just 25 per cent of their wages for entertainment and other non-essential items.

It revealed that spending on essentials rose by six per cent year-on-year in February.

This was aided by the fact that gas and electricity spending went up by over ten per cent and water bills rose by nearly 16 per cent.

Patrick Foley, chief economist at Lloyds TSB, said : "Households remain under real pressure. Any improvement in this situation will depend on lower inflation on essentials as income growth is likely to remain weak in the short term."

Rising utility prices is a reason why one in three Brits are having to rely on their overdraft to pay their bills, according to research from Moneysupermarket.com.