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Millions of household bills have been left unpaid over the last six months as British homes begin to feel squeezed by economic conditions, a new report has revealed.

A study by financial comparison website MoneyExpert.com has shown nearly seven million bills have been left unpaid since June 2007 and rising energy prices could cause more to be ignored.

It has claimed that 2008 is likely to be financially tough for Britons but that those deliberately ignoring bills should take action to avoid affecting their credit rating.

Sean Gardner, chief executive of MoneyExpert.com, commented: "With energy prices rising and credit becoming harder to come by, there could be plenty of normal people who will find paying even their basic household bills a daunting prospect in 2008."

Moneysupermarket.com has warned that some energy providers fail to inform existing customers of their best deals, a practice which it claims brings in a further £2.5 billion a year.

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