Which? finds 1.3 million households missed a bill payment in a single month

Which? estimates 1.3 million households missed or defaulted on bills in the month to 9 June, and almost 800,000 missed at least two payments.

Data from the latest Consumer Insight Tracker* shows many are struggling to afford the day-to-day running of their home as costs continue to surge.

Here, we delve into the detail and explain what you can do if you're struggling to pay your bills.

Missed payments remain high

Of the 1.3 million households who missed or defaulted on a household bill payment, 60% failed to pay more than one. 

Among these, 42% did not pay their energy bill, 40% missed their council tax payment, 38% could not afford their water charge, and 32% struggled to pay their broadband and/or television package fee.

Find out more: 

Renters more likely to miss payments

Missed payments were again particularly high among renters surveyed in June, with one in 20 (5.2%) failing to pay their monthly bill to their landlord. 

Results also show that 1.4% of mortgage holders missed payments last month. 

The average UK monthly rental bill is currently the highest it has ever been, and there are little signs of costs being scaled back. 

According to the latest HomeLet Rental Index, the average cost for new lets is £1,229. This is a 10.4% increase from June 2022.

Mortgage costs have hit the headlines over the past month, and rates are expected to keep climbing this year – putting more pressure on struggling homeowners.

Find out more: 

Two million households miss or default on bills

Overall, two million households missed or defaulted on at least one mortgage, rent, loan, credit card, or household bill last month. 

This equates to 7.2% of households – a rate in line with the same time in the past two years, but higher than in June 2020 (4%).

What to do if you're struggling to make payments

If you’re finding it hard to keep on top of your bills – whether it be your mortgage, energy payments, or loan – you should contact your provider.

More than half make financial adjustments

In the past month, over half (56%) of households made at least one financial adjustment – such as cutting back on essentials, selling items or dipping into savings – to cover essential spending. This equates to an estimated 15.8 million households.

This is lower than the levels seen over winter but much higher than the 40% figure seen two years ago before the cost of living crisis began. 

Missed payments are 'incredibly worrying'

With the Bank of England expected to raise interest rates again in August and energy bills predicted to remain at high levels until the end of the decade, consumers will continue to face financial pressures. 

Which? is therefore calling on energy firms, broadband providers and supermarkets to do more to help their customers and ensure they are providing value for money. 

For example, supermarkets should make budget line items widely available, energy firms need to ensure their customer service departments are fully staffed, and telecoms firms need to properly advertise their social tariffs to eligible customers.

Rocio Concha, Which? director of policy and advocacy, said: 'It’s incredibly worrying that millions of households are missing bill payments every month. We’d encourage anyone who’s struggling to seek free debt advice and reach out to their bill provider for help.'

*The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.



source https://www.which.co.uk/news/article/which-finds-1.3-million-households-missed-a-bill-payment-in-a-single-month-aml8q3j4Y8X2
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