Financial difficulty and long-term health conditions

Key findings

• Individuals with long-term mental health conditions missed household bills or credit card payments at a rate of 14%, double that of those not having long-term conditions. The rate among those having household income below £28,000 was 18%.
• Individuals with long-term physical health conditions missed household bills or credit card payments at a rate of 7.7%, 1.7 times that of those not having long-term conditions. The rate among those having household income below £28,000 was 9.6%
• Financial distress peaked across both groups in Q3 2024, with individuals managing long-term mental health conditions experiencing a further surge to 18% in early 2026.
  
  

Introduction

The relationship between ill health and financial wellbeing has been explored elsewhere and shown that those with medical conditions are more likely to be in financially difficult conditions. To shed further light on this relationship, we have used the responses from July 2023 to June 2026 Consumer Insight Tracker (asked monthly) to analyse the rate of ‘household bills or credit card payments missed’ in the last month.

Long-term conditions are higher for those with lower household income (less than £28,000)

The analysis of missed household payments looks at the rates across age groups and household income ranges. Before outlining that analysis, the table below shows the proportions of those having long-term mental, and long term physical health conditions across age and household income. It shows those having:

• long-term mental health conditions are in higher proportions among those aged under 55, or having lower household income.
• long-term physical health conditions are in higher proportions among those aged 55+, or having lower household income

In both, those having lower household income had higher prevalence.

Figure 1 the approximate proportions of long term conditions by age group and household income

The analysis that follows compares the rate of missed household bills/credit card payments between those having each long term health condition and those not having either long-term condition. 

As the age and household income profiles of those having long-term mental health, or long-term physical health conditions differs from those not having them, two weight schemes were applied to those not having either a mental or physical long-term condition. This is so they would match the age and household income profile of each long term condition.

The rate of missed household bills/credit card payments among those having long-term mental health conditions

Missing household bills/ credit card payments is a sign of financial distress. Using three years of responses to our Consumer Tracker we compared the rates of missed household bills or credit card payments between those having a long-term mental health condition to those not having any long-term health conditions.

This rate masks variations within age groups and levels of household income. The table/chart below shows that the biggest disparity of missed bill rates occurs for those aged 55 and over. However, the highest absolute rate of missed bills was among those aged 34 to 55 at 16.5%, so virtually one in six in that age group.

Figure 2: missed household bill/credit card payment rates for those having long-term mental health conditions.

Given the age profile of those having long-term mental health conditions (see figure 1), the most important values are those for the age 35 to 54; and the low household income, which have 16% and 18% miss rates respectively. These were both double the rate of those not having long-term conditions.

The rate of missed household bills/credit card payments among those having long-term physical health conditions

Again using the July 2023 to June 2026 responses from our Consumer Tracker we also compared the rates of ‘missed household bill/credit card payment’ between those having long-term physical health conditions to those not having long-term health conditions.

The table/chart below shows that the biggest disparities occur for those aged 55+. The highest absolute rate of missed household/credit card bills is those aged 18 to 34 at 14%, so around one in seven of this group.

Figure 3: shows results for missed household bills/credit card payments for those having long-term physical health conditions.

Given the age profile of those having long-term physical health conditions (see figure 1), the most important values are those for aged 55+ and those having low household incomes. These are 4.0% and 9.6% respectively, and these being 2.3 and 1.7 times the equivalent for those not having long-term conditions. Thus the figures for those on low household income are especially relevant.

Rates over time of missed household bill / credit card payments

Over the last three years there has been significant pressure on households due to the cost of living. We analysed the overall missed household bill/credit card payment rates from responses to our Consumer Tracker between July 2023 and June 2026.

Those having long-term mental health conditions, their levels rose in quarter 3 2024 to 16% with an increased multiple over those not having long-term conditions at 2.4 times. In quarters 1 and 2 in 2026 the missed household bill level rose to 18%.

Figure 4 - missed bill rates over the last three years for those having long-term mental health conditions and multiple of the rate for those not having long-term conditions

Those having long-term physical health conditions, their highest level was in quarter 3 2024 9.4% with an increased multiple over those not having long-term conditions at 2.3 times. For five quarters the ‘miss rate’ was over 8.0%: quarter 3 2024; quarter 4 2024; quarter 1 2025; quarter 3 2025; and quarter 2 2026.

Figure 5 - missed bill rates over the last three years for those having long-term physical health conditions and multiple of the rate for those not having long-term conditions

Conclusion

Data from Which?’s Consumer Insight Tracker survey clearly indicates that those with long-term medical conditions are much more likely to report having missed household bill or credit card payment. This indicator of financial difficulty is greater among those with long-term mental health conditions.

The increased rate at which people with long-term health conditions miss payments compared to those without long-term health problems varies over time, but the gap is persistent. On average, those with mental health conditions are twice as likely to report missing a payment than those without, and those with physical conditions are 70% more likely.

Technical appendix

General

Which?’s Consumer Insight Tracker is conducted monthly by Yonder Consulting Limited using its Online Omnibus survey conducted among those on their Panel. Data collection each month achieves circa 2,000 responses weighted to be nationally representative. The data uses responses from June 2023 to July 2026. The total data set sample size is 74,790.

Demographic information includes age-ranges, gender, household income, and whether they have a long term mental or physical condition/disability (or both) according to this definition: Do you have a longstanding physical or mental condition or disability that has lasted or is likely to last 12 months and which has a substantial adverse effect on your ability to carry out day-to-day activities? Answer options: Yes -  mental condition, Yes -  physical condition, Yes -  disability, Yes -  other, No, Refused. The analysis compares those who answered ‘yes -  mental condition’ and ‘yes -  physical condition’ to those who said ‘no’ to any long-term conditions. 

The questions that ascertain whether they have missed any household bills or credit card payments. The text of the question is: Which of the following has your household done relating to the following payments in the last month? with sub-questions 3) Loan or credit card payment; 4) Bills (e.g. phone, utilities, council tax) were (OR) combined into the variable ‘missed household bill/credit card payment’. The answer options were:1) All payments made as normal [EXCLUSIVE]2) Used a payment holiday or payment plan (i.e. spreading payments across a longer period of time)3) Missed or defaulted on a payment95. Other change to payment96. Not applicable  [EXCLUSIVE]97. Don’t know / prefer not to sayThe analysis looks at those answering ‘Missed or defaulted on a payment’.

Weighting to improve analysis

Long-term conditions are not evenly distributed across age and household income. To provide better comparisons between those having long-term conditions and those not, the ‘not having long-term conditions group’ had two weights generated to better match them to the age/household income profile of the yes has long-term mental health condition and the yes has long-term physical health condition. 

The weighting of the non long-term condition group to match those having long term mental health conditions used six interlock weights: age groups 18 to 34; 35 to 54; age 55+; and low household income <£28k; and household income over £28k. The age groups in particular were chosen so that the split among those having long-term mental health conditions was reasonably even (age 18 to 34: 34%; aged 35 to 54: 41%; and aged 55+: 25%). The income split was low: 31% and medium & high 69%).

The weighting of the non long-term condition group to match those having long term physical health conditions used six interlock weights: age groups 18 to 55; 55 to 64; age 65+; and low household income <£28k; and household income over £28k. The age groups in particular were chosen so that the split among those having long-term physical health conditions was reasonably even (age 18 to 54: 39%; aged 55 to 64: 22%; and aged 55+: 39%). The income split was low: 56% and medium & high 44%).