Almost seven million Britons are living beyond their means and refuse to alter their lifestyle despite the recession, according to latest research.

They typically need take home pay of £1,700 a month to cover their costs, which equates to more than the average salary. But earnings are failing to keep pace, leaving them with an annual shortfall of £4,320, the findings from insurer Bright Grey suggests.

It found that almost a third of people say their spending puts a strain on the household budget, while 8 per cent admit their spending has put their household into debt.

The most common reason cited by 30 per cent of people for overspending was ‘just because I have to’, while 21 per cent said they enjoy their lifestyle too much to give it up. A further 15 per cent said they are simply hopeless with money and 11 per cent admitted they use credit to keep up with high-earning friends.

Roger Edwards, a director at Bright Grey, said: “Even in an Age of Austerity the public's spending shows no sign of waning, as the average UK adult continues to spend beyond their means and rack up debt.

“Worryingly, this is mainly due to the average salary being far short of that needed to lead a comfortable life and those who just can't help but spend either to fund their lifestyle or just to make ends meet.”

It comes after separate research suggested Britons are typically draining their savings by £100 a month to cover household bills and ‘back to school’ costs.

They had just £1,771 in savings during the three months from July to September, down £279 on the previous quarter and the lowest level since records began in January 2009.

telegraph.co.uk