More than 70 per cent of families are struggling financially, according to research by Netmums.
The parenting site found that families are on the brink of poverty, and the situation could worsen if they are hit by further price increases or lowered incomes.
Of the 2,000 mothers interviewed, one in five revealed that they were regularly missing meals so that their children could eat.
The survey reported that a quarter of families are living on credit cards, 5 per cent look to regular payday loans and one in 100 families have turned to loan sharks to help finances.
To make money almost half of the families surveyed admitted to selling or pawning goods in order to live. More shockingly a lack of cash has meant 16 per cent are being treated for stress related illness.
64 per cent of families have less money coming in compared to this time last year, and 61 per cent are struggling due to money shortages each week.
A third have resorted to borrowing money from friends and family, and to help fund everyday living one in 20 has taken out a bank loan.
Sally Russell, founder of Netmums said: “It’s shocking that seven in 10 families in the UK today are living on the edge of existence – but it’s a crisis that needs exposing.
“Mums shouldn’t be missing meals to feed their children or turning to loan sharks in modern Britain.
“Family finances are so strained that any more pressure will turn this personal crisis into a catastrophe for the nation”.
A spokeswoman for the Department for Work and Pensions said: “Our welfare reforms will have a dynamic impact on some of the poorest families and will lift over one million people out of poverty.
“We continue to support low income families and put £6.5billion a year into financial support for lone parents, but we know that debt remains a real driver of poverty”.
Article by Charlotte Grenhalgh
