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

Millions of UK households are struggling to afford bill and housing payments, Which? research finds, as the consumer champion urges essential businesses – such as supermarkets, telecoms companies and energy firms – to do more to support their customers. 

Which?’s June consumer insight tracker found that 1.3 million households missed or defaulted on a household bill payment – such as an energy, water or council tax bill – in the month to June 9th. Missed bill payments have been consistently high since January 2022, showing just how many are struggling to make ends meet every month.

Even more worryingly, six in ten (60%) of those missing a bill payment reported that they missed more than one household bill payment.

Among those who missed one or more bills, two in five (42%) did not pay their energy bill, four in 10 (40%) missed their council tax payment, nearly four in 10 could not afford their water bill (38%) and a third (32%) struggled to pay their broadband and/or television package bills.

Which?’s consumer insight tracker also estimates that 560,000 households missed or defaulted on a housing payment in the month to June 9th – with one in 20 renters (5.2%) and 1.4 per cent of mortgage holders missing a housing payment.

Overall 2 million households missed or defaulted on at least one mortgage, rent, loan, credit card or bill. The 7.2 per cent missed payment rate observed is in line with the level seen at the same time in the last two years, but higher than in June 2020 (4%).

Over half (56%) of households reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. This equates to an estimated 15.8 million households.

Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing. This is lower than the levels seen over winter but much higher than the four in 10 (40%) seen two years ago before the cost of living crisis began.

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.

At such a difficult financial time, businesses must do everything in their power to ease pressures on household budgets. Which? is calling on essential businesses – energy firms, broadband providers and supermarkets – to do more to help their customers and ensure they are providing value for money.

For example, supermarkets need to make budget line items widely available – particularly in convenience stores – energy firms need to ensure their customer service departments are fully staffed and able to support any customers who are struggling to make ends meet and telecoms firms need to properly advertise their social tariffs to eligible customers.

If people are missing or struggling to afford essential payments – such as energy, credit card or mortgage payments – then they should speak to their provider immediately for help.

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.

“As so many people face financial hardship, Which? is calling on businesses in essential sectors like food, energy and telecoms providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.”

ENDS

Notes to editors 

Which? cost of living campaign

The consumer champion has launched a campaign calling on businesses in essential sectors – supermarkets, telecoms and energy – to do more to help their customers through the cost of living crisis. More information on the campaign is available here.

Which? advice if you’re struggling to pay your bills

Start by contacting your bill provider to see if you are missing out on any discounted tariffs or reductions and if they can help you find a payment plan you can afford. More information here.

Energy providers should not just disconnect people and can help customers find a payment plan they can afford, and may be able to refer you to additional hardship funds. If people have a traditional prepayment meter and cannot afford to top it up, they should contact their energy supplier for help to keep their supply going. They may be able to access emergency credit – though you will eventually need to repay this through a payment plan. More information here.

If households are struggling to afford their mortgage, they should speak to their lender as soon as possible. Lenders should be understanding if income levels have changed – for example, because someone has lost their job – and may offer a payment holiday, extending the term to lower the monthly payment or a temporary switch to interest-only repayments. Renters should speak to their landlords about their situation and ask if they are able to offer temporary help. More information here and here.

Consumer insight tracker

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.

Which? estimates that between 3.6 per cent and 5.4 per cent of households missed or defaulted on a bill payment in the last month, with an average estimate of 4.5 per cent. Based on the survey and the ONS estimate for the number of households in 2022 of 28.2 million, this scales up to between 1.0 million and 1.5 million households missing a bill payment in the last month, with an average estimate of 1.3 million.

Which? estimates that between 1.4 per cent and 2.6 per cent of households missed or defaulted on a housing (mortgage or rent) payment in the last month, with an average estimate of 2 per cent. Based on the survey and the ONS estimate for the number of households in 2022 of 28.2 million, this scales up to between 390,00 and 730,000 households missing a housing payment in the last month, with an average estimate of 560,000.

Which? estimates that between 6.1 per cent and 8.3 per cent of households missed or defaulted on a housing, bill or credit payment in the last month to June, with an average estimate of 7.2 per cent. Based on the survey and the ONS estimate for the number of households in 2022 of 28.2 million, this scales up to between 1.7 million and 2.4 million households missing a bill payment in the last month, with an average estimate of 2.0 million.

The survey indicates that between 54 per cent and 58 per cent of households made an adjustment to cover essential spending in the last month to June, with an average estimate of 56 per cent. Based on the survey and the ONS estimate for the number of households in 2020 of 28.1 million, Which? estimates that between 15.2 million and 16.4 million households made an adjustment to cover essential spending in the last month, with an average estimate of 15.8 million.

Figure 1: 7.2% of households said they had missed a payment in the last month in June 2023

Source: Which? Consumer Insight Tracker, Online Poll weighted to be nationally representative, approx 2,000 respondents per wave. The chart shows the proportion of households who have missed a housing, bill, loan or credit card payment in the last month.

Figure 1: 56% households made at least one adjustment to cover essential spending in the last month

Source: Which? Consumer Insight Tracker, Online Poll weighted to be nationally representative, approx 2,000 respondents per wave. Adjustments include: cutting back, dipping into savings, borrowing from friends and family, taking out credit cards or loans, selling items, using an overdraft.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.

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