Data from HMRC shows that insurance premium tax receipts totalled £956m in October and bring the seven-month total since the start of the current tax year to £5.5bn. The cumulative total is 14% higher than for the same period last year.

Cara Spinks, spokesperson at financial services consultancy Broadstone, bemoaned the rising pressure being put on policyholders and the impact it had on their ability to afford cover.

She said: “Insurance premium tax was not on the cards in October’s Autumn Budget, despite many hoping for the Chancellor to announce some measures to relieve the rising costs on many important insurance products.”