Millions missing payments on key household bills for first time

The figures come from new research from the Money and Pensions Service, which showed that a third of people have missed one payment in 2023 – with 14% saying it was the first year this has ever happened.  

Of the products, credit card repayments were the most common type that went unpaid at 11%, followed by utility bills and council tax or rates – both at 10% - and bank overdrafts or loans – eight percent. Meanwhile, one in 20 had missed rental or mortgage payments – sitting at five percent and four percent respectively.  

Its figures also show less than two thirds of people – 62% - would talk to their creditor, this is compared to the one in seven – 15% – who would do nothing if they were heading for trouble. Asked why they wouldn’t let their creditor know, a fifth said they’d feel too embarrassed or ashamed.  

Feeling they’d be judged, 17%, having to disclose something they weren’t willing to, 15%, and not knowing creditors can help, 15%, were the other main reasons.  

It also found that just over a third of people said they would speak to an organisation offering free help or debt advice if they thought they were going to miss a payment, with most preferring either to cut back on essentials – 66% – while other would speak to family or friends – 40%. Additionally, 23% said they’d take out more credit to meet the cost.  

The Money and Pensions Service’s head of guidance Charlotte Jackson said: “People are struggling this year and as these results suggest, some household budgets are becoming severely stretched.

“One in seven people currently wouldn’t take any action if they started to struggle and this increases their risk of becoming stuck in the trap of long-term problem debt.”