Abbey has launched a new credit card which is designed to pay for essentials offering a competitive rate of cashback to help struggling households.

The credit card will have a limit of only £75 – it is intended to pay for small purchases such as essential groceries, to tide consumers over as the cost of living rises and offer them some help by paying cashback.

The new Abbey credit card will offer a number of benefits for cash-strapped consumers, such as three per cent cashback on purchases made at petrol stations and supermarkets for the first six months, and no interest to pay on balance transfers for nine months and purchases for three months.

Abbey has launched the card to help consumers who are the hardest hit by the rising price of food and energy. The price of a loaf of bread alone has risen by 41 per cent in the last 12 months, and, overall, food prices have risen 12.7 per cent.