Nearly one in six renters missed an essential payment in a single month

UK households are continuing to struggle with the cost of living, leading to people missing bills and skipping meals, according to the latest Which? consumer insight tracker.

The survey* found nearly one in six renters missed an essential payment, and an estimated 2.4m households missed or defaulted on at least one rent, mortgage, loan, credit card or bill in the month to 12 January.

One respondent in our survey told us: 'We are not living, we are existing at this point.'

Here, we delve into the findings and offer advice on what to do if you're struggling to pay your bills.

Renters struggling with missed payments

Missed payments were particularly high among renters with 15.9% of those surveyed missing at least one rent, loan, credit card or bill payment between December 2023 and January 2024.

Over the same period,  6.8% of mortgage holders missed an essential payment, compared to just 2.8% of outright owners. 

Mortgage holders likely feel the effects of a high Bank of England base rate, which has remained at 5.25% since August 2023. This impacts those on tracker and standard variable rate (SVR) mortgages and those who may have been forced to re-mortgage in the past 12 months.

• Find out more: Bank of England base rate and your mortgage

Which essential payments are being missed?

In total 8.5% of households said they had missed a payment in the month to 12 January. 

The most common type of payments being missed were bills (5.1%), followed by loan or credit card payments (4.4%) and housing payments (2.7%).

Of those who missed a household bill payment, the most common bill type missed was an energy bill (56%). This was followed by council tax (36%), water (30%), phone (29%) and broadband and/or TV package (29%).

 'I only have one meal a day'

Six in 10 households reported making at least one adjustment to cover essential spending, equating to 16.5m households.

Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing.

This is slightly higher than the levels seen in the previous four months (53%-56%) and the same as the 58% seen last January. 

Respondents told us they had lost their social life, avoided putting the heating on, and cut back on food to make ends meet. 

One respondent said: ‘We rarely use the heating. We are not living, we are existing at this point. No holidays, no luxuries, just stress and worry.’

Another said: ‘I’m cutting back on the amount of food I buy, I only have one meal a day, I don't put the heating on and I limit myself to no longer than seven-minute showers and only three a week.’

• Find out more: cost of living help and advice

Which? calls for increased support

In light of these struggles, Which? is campaigning for businesses to do more to help their customers and ensure they provide value for money.

Rocio Concha, Which? Director of Policy and Advocacy, said: ‘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.’

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What to do if you're struggling with your rent

If you've missed a payment it's important to contact your landlord as soon as possible to discuss your options.

You should explain why you haven't been able to pay, and be as honest as you can about your circumstances. If you can pay something towards the rent, but not the full amount, make this clear.

Your landlord or letting agent isn't required to negotiate with you, but they may be willing to agree to a repayment plan. This would involve you settling the amount owed within an agreed timeframe - perhaps by adding a little more to your future payments.

There may also be some schemes you can join to get temporary relief, such as Breathing Space. We explain how they work in our guide on what you can do if you can’t pay your rent.

What to do if you're struggling with your mortgage

Mortgage holders should contact their lender who can explain their options. This could include deferring a payment, increasing your mortgage term to help reduce your monthly payments or switching to an interest-only deal for a period.

If you're on certain benefits, such as Universal Credit or pension credit, you might qualify for a Support for Mortgage Interest (SMI) loan. This is a loan from the government that will pay the interest on up to £200,000 of your mortgage, direct to your mortgage lender. 

However, you'll have to repay this loan, usually when you sell, and you'll be charged interest.

We’ve got more advice, including switching your mortgage, in our guide on what to do if you can’t pay your mortgage.

How to save money this year

Anyone worried about paying the bills should contact their providers immediately. There are measures they can take to help ease the costs for those struggling the most. 

As well as this, there might be things you can do yourself to reduce your bills. 

Draught-proofing your home or adjusting your combi boiler's flow temperature could reduce your energy bills. You can also send your supplier more regular meter readings to ensure your payments are accurate. 

Switching to a cheaper supermarket will help reduce your food bills. Each month, we check prices to find out which supermarket is cheapest.

To help with fuel costs, we've put together a guide with money-saving driving tips such as ways to reduce what you pay for petrol. 

You can get all of Which?'s expert advice on cutting costs on our cost of living help page.

*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.