Millions of British families are already failing to pay vital bills
Millions of families are already paying vital bills, including mortgages, ahead of council tax hikes, water bills, prescriptions and more starting in April
Millions are defaulting on major bills, including mortgages and energy, as families brace for another round of punishing price hikes in days.
Prices for broadband and mobile will rise by a whopping 17.3 percent, while council taxes, water bills, prescription costs and stamps will rise from the beginning of April.
The biggest squeeze on living standards since the 1950s means that as many as 2.5 million households have missed ‘need to pay’ bills in recent weeks, according to research by Which?
And while millions are cutting back on expenses, including food, many don’t have enough money in the bank at the end of the month to cover the cost of essentials.
Director of policy and advocacy at Which?, Rocio Concha, said: ‘Millions of households are struggling to get their finances on track amid massive cost-of-living pressures.
Biggest squeeze on living standards since the 1950s means as many as 2.5 million households have missed ‘need to pay’ bills in recent weeks (file image)
Which? research found that 60 percent of households made at least one adjustment to cover essential expenses such as utility bills, housing costs, groceries, school supplies and medicines (file image)
“This should ring alarm bells, especially as painful increases to many essential bills will take effect within days.”
She added: “Our findings underline the need for government and businesses in key sectors – such as supermarkets, energy and telecom providers – to do everything they can to support consumers, especially those who are struggling financially, in this incredibly difficult time.’
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Typically, many households struggle to pay essential bills in January due to the overspending around Christmas, but which ones? said that this phenomenon continued until February and March.
It said: ‘January tends to be the month when the highest number of households tend to miss or default on payments for housing, bills, loans or credit cards, as people are charged with the cost of Christmas.
Usually this figure is lower in February and March as people take control of their finances, but this year it has remained alarmingly high.
An estimated 2.5 million households (8.8 percent) missed or defaulted on a payment in March, compared to 8.2 percent and 8.1 percent in January and February, respectively.
“It’s rare that the rate stays this high for several months.”
Which? research found that 60 percent of households made at least one adjustment in the past month to cover essential expenses, such as utility bills, housing costs, groceries, school supplies and medicines.
These include cutting back on essentials, cutting back on savings, selling or borrowing assets.
More positive news: The latest consumer insight survey from Which? showed that, despite the high pressure on finances, there has been a slight recovery in consumer confidence, although it remains negative.
Some 21 per cent think the UK economy will improve over the next 12 months, while 54 per cent said they think it will deteriorate, giving a net confidence in the future economy of -33. This is better than the -68 figure six months ago.
The hope that energy bills will finally start to come down from July, along with the government’s decision to abolish the penalty price for having a prepayment meter for gas and electricity has helped.