With the cost of living spiralling higher and faster than the rate of inflation, nearly eight out of ten householders have admitted their rising utility bills are impacting on their finances.

Research from Santander found that people all over Britain are cutting down on their electricity and heating in an effort to to save money on their bills, with almost one in three (29 per cent) saying their standard of living has been compromised by the amount they are shelling out to run their home.

Carlos Palacios, banking director at Santander, commented: "Times are tough for a lot of people at the moment and increasing household bills are one of the biggest causes of squeezed consumer finances. People have already been forced to make a number of adjustments to their lifestyle to cope with the hikes, and many will struggle to cope with further increases."

However, there are ways individuals can slash their utilities spending in the home, such as replacing old or burned out lighting with energy efficient LED light bulbs, which use up to 80 per cent less power usage compared with a conventional light source.

This could be a wise investment if the cost of living continues to climb, especially as the bank's research revealed that ten per cent of those surveyed said they would not be able to manage financially if their household bills rise again over the next 12 months.

Meanwhile, US lighting technology specialist Redwood Systems announced it sees a bright future for LED lighting.

Chief executive Dave Leonard told BusinessGreen: "With LED technology there's the potential to reinvent the infrastructure that drives lighting in a way that delivers massive cost savings and maximises the efficiency savings you naturally get from LEDs.

"But there is also the potential to use lighting to provide the nervous system for the building. Lights are everywhere in the building so a sensor at the lighting point allows you to monitor everything," he added.

The company this week unveiled plans to official launch its LED products in Europe.