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Rises in the living costs faced by British families in recent years has left many on the edge when it comes to their finances, it has been claimed.

While millions of consumers have been struggling with debt problems in recent years, the typical cost of living has increased by more than one-quarter, according to a report from Combined Insurance.

Indeed, since June 2006, the typical monthly outgoing of an average UK consumer has risen from around £945 to £1,281, the insurance firm maintains.

For many people, money problems have been made worse by sharp increases in the costs associated with child care, while household bills have also risen considerably in recent months.

Nigel Brittle, director at Combined Insurance, said: "The many cost of living hikes are taking their toll on the monthly budget and many Brits are living on the edge with their finances."

A recent report from uSwitch.com claimed that household energy bills will be hundreds of pounds more expensive for British families this winter than was the case in late 2007.

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