A report from consumer group Which? estimates that 5.7 million households faced at least one “affordability problem” in April, as cash-strapped households struggle to cope with rising bills and other costs. Consumers are under increasing pressure from the cost of living crisis – inflation is at a 40-year high and energy bills are set to soar to £3,600 a year this winter – more households are struggling to afford the basic telecoms services they previously took for granted . Data analysis by regulator Ofcom, Which? found that 3.5 million households cut back on spending on other essentials such as food and clothing in April to pay their telecoms bills. That’s up from 2.2 million in February. “The fact that millions of households have made sacrifices to prioritize their broadband and mobile connections during the cost of living crisis shows how essential these services are to everyday modern life,” said Rocio Concha, director of policy and advocacy. in which?. The financial crisis is disproportionately affecting those on the lowest incomes: households with an annual income of up to £25,999. The report found that 22% of lower-income households had to cut back on spending elsewhere to afford connectivity services in April. That figure was 13% among middle-income households – those with an annual income of £51,999 – up from 7% in February. Which? said the government should reduce the 20% VAT rate on telecom bills to 5%, in line with other staples such as gas and electricity. The organization points out that even the most financially vulnerable customers, those entitled to specially reduced social tariffs, are charged 20% VAT. “To help reduce the cost of bills, the next prime minister should reduce the VAT paid on telecommunications in line with other essential services,” Concha said. “Businesses need to support anyone struggling to pay their bills and ensure consumers know and have access to the best deals.” Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk Earlier this year, the UK’s biggest telcos increased bills by almost 10% – January’s consumer price inflation plus 3.9%. While telcos have faced some criticism for driving this year’s rise, it came before inflation hit a 40-year high and the real impact of soaring food and energy prices had begun to be felt in households. Last week, BT said higher prices for broadband and mobile contracts helped the company return to sales growth in the first quarter. It pledged to continue implementing above-inflation increases next year to cover rising costs and investment in fiber broadband deployments across the country. In June, the UK’s biggest mobile and broadband companies – including BT, Virgin Media O2, Vodafone, Three, Sky and TalkTalk – agreed a plan at a government-led summit to help struggling customers to pay the bills, including moves to switch to cheaper deals without paying a penalty.