Over two in five (43%) UK adults, which equates to around 22 million people, say their financial situation will get worse over the next 12 months, StepChange Debt Charity has found.

A recent YouGov study also found that this compares to just over a quarter (28%), around 14.5 million, who believed their financial situation would be worse off at the end of 2021.

Of those who say their financial situation would get worse in the next year, three in four (74%) said this was because of energy bills going up in January.

As a result of the continued cost of living crisis, of the one in two that said they are worried about their finances, half have cut back on essentials and a quarter (24%) have borrowed money.

Despite so many people experiencing money worries, only 4% of people concerned about their finances have contacted an independent organisation such as StepChange or Citizen’s Advice.

However, StepChange said that it has seen as rise in the number of people accessing debt advice on Christmas Day compared to the previous year. Almost 1,000 people accessed debt advice on the StepChange website on 25 December 2023, compared to almost 400 a year previously.

Chief executive officer at StepChange Debt Charity, Vikki Brownridge, said: "January is always a busy time for us as a charity, and we know that it’s not just Christmas that has stretched people’s budgets this year, but almost two years of a long and challenging cost of living crisis.

"With energy bills having risen again, and the colder weather setting in, unfortunately the new year will not be easy on people’s finances. While we have seen a pause in the sharp rises in interest rates and inflation in recent months, the impact of this is far from over."

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