1.3 million households missed a bill payment in a single month

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. Missed bill payments have been consistently high since January 2022, showing just how many are struggling to make ends meet every month.

The research found that 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.

The tracker also estimated 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.

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.”