Of these, some 12million people have been forced to stop or change their
savings habits just to fund day-to-day living.
The findings are supported by the latest Lloyds TSB Spending Power Report, which shows that the amount the average Briton has to spend on non-essential items has fallen by around £100 a year - or just under £10 a month.
Lloyds' figures also reveal that the proportion of people who have nothing left once bills and essentials are covered now stands at 19%, up from 15% a year ago.
Kevin Mountford, MoneySupermarket's head of banking, said: "Given the economic backdrop, it comes as no surprise that many people have reduced - and even stopped - saving.
"However, there are ways to lower the impact. The first step should always be to review outgoings, ensure you are on the best deals and look at ways to be savvier with your spending."
How can I reduce day-to-day living costs?
MoneySupermarket's researchers asked people what they had stopped buying or cut down on to save money over the last 12 months.
The top response, at 45%, was eating out, followed by buying new clothes at 40% and going on holiday at 32%.
Meanwhile, a quarter of men said they had stopped drinking alcohol and almost a third of women said they had cut down on trips to the hairdresser's.
These findings are in line with a new report from the Office for National Statistics (ONS), showing that in the third quarter of 2011, household spending was just 1% higher than at the recession's lowest point in mid-2009.
However, there are ways to enjoy the odd treat without overspending.
You could, for example, use discount vouchers to get money off little luxuries such as a meal out or a new dress.
Deals currently available on MoneySupermarket include 25% off your food bill at Loch Fyne restaurants, £5 meals at All Bar One and £15 off your first order with online fashion retailer Very (as long as you spend at least £40).
Reward schemes such as Sainsbury's Nectar or Tesco Clubcard points can also help to reduce your weekly shopping bill.
The Tesco Clubcard Credit Card, for example, allows you to boost your savings by earning extra Clubcard points for every £4 spent outside the store.
It is therefore a good option for savvy shoppers - as long as they have the discipline to avoid over-borrowing during the 15-month 0% period and being hit by the representative APR of 16.9% (variable).
Other ways to free up some extra cash include checking through existing direct debits to ensure they are still valid and cancelling any unwanted payments.
How can I save on my household bills?
More than four in 10 of those who told MoneySupermarket they are saving less said that the need to cover household bills was the main reason for this.
Little wonder, with the Lloyds figures indicating that higher energy bills helped to push spending on essential items in January up by 4.9% year on year.
The truth is, however, that millions of Britons continue to pay over the odds for their utilities, home phone, broadband and mobile phone.
That's why using MoneySupermarket to switch all your major bills can help save over £1,000, with 20% of the gas and electricity customers who switched via the site in November 2011 saving at least £200 on energy alone.
The best way to reduce your household bills is therefore to check out the utilities, mobile phones and broadband channels to find the cheapest deals.
Where should I put the money I save?
Even if you can only afford to save a small amount each month, the main thing is to put some cash away on a regular basis.
One good way to accomplish this is to set up a direct debit for a small amount each payday.
Kevin Mountford said: "Even putting away just a few pounds a week can add up and help you to cope with unexpected bills."
It is also worth shopping around for the best-paying savings accounts.
"The top savings rates are paying over six times' base rate, so it is still possible to gain decent returns," Mountford added.
Accounts worth a look include Santander eSaver Issue 4, which offers easy access to your money and is currently paying a variable rate of 3.10% (including a 12-month bonus of 2.60%) on balances of £1 or more.
If, on the other hand, you would prefer an account with no bonus, the Virgin Easy Access E-Saver pays 2.85% (variable) on savings of between £1 and £100,000.
When it comes to regular saver accounts, which often offer better returns but require you to pay in a certain amount every month, the current market leader is West Bromwich Building Society's Fixed Rate Adult Saver at 4.10% for one year.
You must pay in between £10 and £250 a month, although the terms do allow you to miss up to two months without penalty.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct
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