Twenty-nine per cent of Brits have reported that their financial health has deteriorated over the past six months, as rising bills and costs take a toll on their financial wellbeing, Moneyhub has reported.

Despite the UK’s inflation rate moving back towards the Bank of England’s 2% target, Moneyhub said that consumers are still feeling the pinch from record inflation levels.

Of those whose financial health has worsened, 63% cited rising bills as the main driver, with three in five (60%) pointing to inflation as a factor.

According to Moneyhub’s research, 15% of people identified themselves as "stretched", which is defined as having nothing left outside of money used for necessary expenditure, while 9% described themselves as "struggling", which is those that cannot afford their necessary outgoings.

The company added that those identifying as stretched (57%) or struggling (75%) were more likely to have seen their financial health worsen over the course of the last six months.

Despite the economic challenges, 18% of individuals that have seen their financial health worsen have spoken to their financial services provider.

Of those that hadn’t approached their financial services providers, 43% said it was because they didn’t believe the provider would be able to offer any support, and a further 13% were concerned about being penalised.

Managing director of decisioning at Moneyhub, Suzanne Homewood, said: "The financial strain many people are experiencing is deeply concerning. While we cannot change the macro-economic environment, the financial services industry can take meaningful steps to support customers better.

"Understanding the full scope of a customer's financial world allows for timely interventions that can prevent issues from spiralling out of control. By leveraging data and technology, service providers are able to have a comprehensive view of their customers’ financial behaviours and world, enabling them to spot issues early and provide the necessary support to help the individual get back on track, positively impacting financial health even in challenging times."

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