29 January 2024 , 11:38
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A new survey reveals that one in six 'stressed' renters miss essential payments every month.
Consumer group Which? is calling on UK businesses to support those struggling with the cost-of-living crisis. One person told Which?: "We are not living, we are existing at this point. No holidays, no luxuries, just stress and worry."
The consumer brand estimates that 2.4 million households missed at least one payment on their mortgage, rent, loan, credit card, or bill between December 2023 and January 2024. This is a significant increase from the 1.8 million households that missed payments in the month ending on December 8, but it aligns with the levels of missed payments seen throughout most of 2023.
An online poll conducted by Yonder for Which? found that renters were more likely to miss essential bill payments. Between December 2023 and January 2024, almost one in six (15.9%) of renters surveyed missed at least one bill. During the same period, only 6.8% of mortgage holders missed essential payments, despite high Bank of England interest rates. In contrast, only 2.8% of homeowners missed a payment.
The survey also discovered that over 200 people on universal credit (24%) reported missing or defaulting on a payment. Bills are the most common payment that households miss (5.1%), followed by loan and credit payments (4.4%) and housing payments (2.7%). Energy bills (56%) top the list of missed household payments, with council tax (36%), water (30%), phone (29%), and broadband and TV packages (29%) following closely behind.
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According to Which?, 58% of households, roughly 16.5 million, have made at least one adjustment in the past month to cover essential costs like utility bills, housing, groceries, school supplies, and medicines. These adjustments range from cutting back on essentials, dipping into savings, selling possessions, or borrowing.
The figure is slightly higher than the levels seen in the previous four months (53% to 56%) and matches the 58% seen in January 2023. Cuts to national insurance and expected increases in wages and state pensions have provided some relief for households this year.
However, only 22% of consumers believe that the UK economy will improve in the next year, while almost half (48%) expect it to worsen. Similarly, only 24% of consumers think their future household finances will improve, while 30% expect them to worsen.
With high interest rates set to continue, consumers are likely to face financial pressures throughout 2024. If you're struggling to pay essential bills like energy, credit card, or mortgage payments, Which? advises that you should "immediately" seek help from your provider.
Rocio Concha, director of policy and advocacy at Which?, said: "It's very worrying that missed payment levels are still so high with almost one in six renters missing an essential payment in a single month. We'd encourage anyone who's struggling to seek free debt advice and reach out to their landlord for help."
As many people face financial hardship, Which? is urging 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.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]