The data reveals around 17,750 familes in the city – one in six households – are “seriously struggling” with their finances, council leaders have said.
Single parents, people with disabilities, people who rent their home and families with three or more children are pinpointed as the groups facing the most difficulties.
This is worse than any point during the pandemic, say councillors from Milton Keynes Labour and Lib Dem Progressive Alliance.
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The research, conducted by Bristol University and Abrdn Financial Fairness Trust, found that rising prices have pushed more people into "serious financial difficulties" than the pandemic.
These families are forced into reducing the quality of the food they eat, selling or pawning possessions or cancelling or not renewing insurance.
A total of 4.4m households - one in six across the country - are now estimated to be in such difficulties, and this is up 1.6m over the last nine months, .
The analysis, published today by the Progressive Alliance, comes as the Conservative leadership race continues to ignore the worst cost of living crisis in generations.
Councillor Jane Carr, Lib Dem Progressive Alliance Cabinet member for Social Inequalities, said: “Every family in Milton Keynes is feeling the pinch from the cost of living crisis, and these figures reveal that over 17,000 households are seriously struggling to make ends meet.
“Families in the city need a government focussed on the cost of living crisis and providing real help. The Conservatives’ leadership contest has nothing to say about the real concerns of people in Milton Keynes. Instead it’s all fantasy tax cuts for big business and invented, irrelevant controversies.”
Councillor Zoe Nolan, Labour Progressive Alliance Cabinet member for Children and Families, added: “The Progressive Alliance is doing all it can to support families through this incredibly tough time.
"We are providing over £16m in direct cost-of-living support, opening more food larders, and are providing thousands of free meals and activity sessions for children through the Summer of Play – but we can’t do it all.
"The government needs to step up and provide real help for people struggling, and they need to do it now.”