The Conservatives have claimed families are finding it harder to balance their household finances under Gordon Brown’s government.
Shadow chief secretary to the Treasury Philip Hammond accused Labour of using stealth taxes to decrease Britons’ incomes.
He claimed: "Millions of hard-working families are feeling the financial pinch as the effects of higher interest rates begin to bite and their pay packets are plundered by Gordon Brown’s stealth taxes."
Families are finding it hard to manage in a climate of rising prices, high personal debt and low savings, he added.
He made his comments in response to a survey by Ingenious Securities which claimed household’s interest payments are likely to be 26 per cent higher in the fourth quarter of the year than in the same period 2006.
If this forecast it true, it could compound the problems faced by families already struggling with an extended period of high interest rates boosting the cost of their borrowing.