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Listen nowWhich? finds 1.3 million households missed a bill payment in a single month
Households are struggling to keep up with energy, water, broadband and council
tax payments
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: 17 ways to save money on your household bills
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.
The average two-year fix (6.7%) is the highest it's been in 15 years, and the Bank of England has warned payments will rise by at least £500 a month for nearly one million households between the end of this year and 2026.
- Find out more: what's happening to the cost of renting? and the best mortgage rates for first-time buyers and homemovers
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%).
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 to have missed a bill, housing, loan or credit card payment since June 2020.
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.
If you’re in debt to your energy supplier you might be able to agree on a payment break, secure more time to pay or gain access to hardship funds. Our guide on what to do if you're struggling to pay your energy bills offers guidance on support you could take.
Meanwhile, our guide on what to do if you can't pay your mortgage outlines what support might be available if you're a struggling homeowner. A new mortgage relief charter signed by 85% of UK lenders has cemented support pledges from banks and building societies to help those in need.
If you're a tenant unable to keep up with your bill, check out our guide on what to do if you can’t afford your rent.
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.
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 and using an overdraft.
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.
