Record numbers struggle to pay bills amid ongoing cost of living crisis

The number of households defaulting on essential payments has increased sharply ahead of the Christmas season, according to Which? data. 

One in 10 households said they'd missed payments on their loans, credit cards or household bills in the month to 10 November – the highest level since the Which? Consumer Insight Tracker* began in April 2020.

Consumers remain worried about price rises, with around eight in 10 worried about energy prices, food prices and fuel costs. 

One in six have skipped meals due to high food costs, and a quarter have gone without at least some food.

These figures show that despite falling inflation, large numbers of UK households are seriously struggling with their finances, many possibly for the first time. 

Households losing faith in the UK economy

More than half of consumers think the UK economy will get worse over the next year. By contrast, only one in six think it will improve. 

This leaves net confidence in the future economy at -37, a 10-point drop compared to two months ago. 

People are losing faith in their household finances, too. Two months ago, consumers' confidence rating on this metric was at +21. It's now down to +14, and these figures have been in steady decline since the start of the cost of living crisis.

• Find out more: all our cost of living help and advice

Which? calls for more winter support

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

We're calling on supermarkets to make sure affordable, healthy food options, such as their budget ranges, are widely available in-store, including in their convenience store branches. 

Energy and telecoms firms should advertise social tariffs to customers who are eligible and make sure their customer service departments are fully equipped to support struggling customers. 

Rocio Concha, Which? director of policy and advocacy, said: 'It’s hugely worrying that one in 10 households missed essential payments in a single month. 

'With Christmas and colder weather fast approaching, these pressures on household finances are only likely to worsen in the months to come.

'Which? is calling on businesses in essential sectors like food, energy, and telecoms to do everything possible to help customers get a good deal and avoid unnecessary or unfair costs and charges this winter.'

• Find out more: how to save on energy bills

What to do if you're struggling to pay your bills

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

If you're struggling with your mortgage bill, but your deal's about to expire, check our guide to the best mortgage rates to see if you can find an affordable deal.

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

*The Which? Consumer Insight Tracker surveys a nationally representative sample of approximately 2,000 people per wave.