More than two million missing bill payments, according to watchdog
ITV News' Harry Horton reports live from Westminster as new numbers indicate households are struggling even in warmer weather
The number of households missing essential payments has risen to 2.4 million – in line with the levels seen last winter, a watchdog has warned.
Which?’s July consumer insight tracker found that the number of those missing or defaulting on a housing, bill, loan or credit card payment was significantly higher than in May and in line with the high numbers seen last winter.
It indicates many households are continuing to struggle even in warmer weather, when energy costs should be lower.
Of the missed payments, 1.5 million households missed or defaulted on a household bill such as energy, water or council tax in the month to July 13.
Some 65% of those who missed a household bill payment reported that they missed more than one.
Of those who missed a household bill payment, almost half (49%) missed a water bill, around half (48%) an energy bill, four in 10 (38%) a phone bill and around a third (34%) a council tax payment.
The tracker also estimates that 770,000 households missed or defaulted on a housing payment in the month to July 13, affecting one in 20 renters (5.7%) and 3.4% of mortgage holders.
Almost six in 10 households (59%) – or 16.7 million – reported making at least one adjustment such as cutting back on essentials, dipping into savings, selling possessions or borrowing to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the past month.
Which? also found consumer confidence in their current household situation fell 16 points in the last month to positive 9, down from positive 25 in June.
Less than a fifth of consumers (17%) said they think their household financial situation will get better over the next 12 months, while four in 10 (37%) said they think it will get worse.
One of those struggling is Anastasia Tempest from Leeds who suffers from cerebral palsy.
"As an individual I just feel ignored," says Anastasia Tempest, who is struggling to pay her energy bills
She is now in over £6,000 debt and has been unable to cope with her energy bills for some time.
Anastasia told ITV News: "As a person with a disability it actually costs me more. I've got a bill for over £6,000 and I don't know how I'll pay it.
"I have to charge my electric wheelchair, I have to have the dryer on as I'm unable to hang clothes up. It generally costs me more, heating costs me more because I get cold very easily.
"We're in summer but I still get very cold."
Anastasia says she has now put herself on a Priority Services Register which classifies her as a vulnerable person so that her electricity and gas remain on.
"As an individual I just feel ignored, I don't really know what's going to happen in reality.
"This word 'resilience' is a load of nonsense, it doesn't put money in your pocket."
Now with little to no choice left, Anastasia has turned to charities like Sense to cope with her bills.
Rocio Concha, Which? director of policy and advocacy, said: “Our research has found that the number of households missing essential payments has risen to 2.4 million – in line with the high levels seen last winter – showing that though inflation might have peaked, the human cost of the cost of living crisis continues to rise.
“With interest rates predicted to rise again, these pressures on household finances are only set to increase. 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, to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.”
After being asking if he was doing enough to support struggling families, Energy Minister Grant Shapps said he was 'working hard to support them'
Following the figures that 2.4million people missed essential payments in May, the energy security secretary will meet companies including EDF, SSE, Shell and BP, which collectively have multibillion-pound plans to invest in low and zero-carbon projects.
Mr Shapps will highlight the government’s decision to invest in home-grown energy sources, including renewables, nuclear power and backing North Sea oil and gas, and the steps it has taken to ensure critical energy infrastructure is protected from disruptive protests.
The meeting also comes after BP reported on Tuesday that it made around 2.59 billion US dollars (£2 billion) in underlying replacement cost profit over the three months to the end of June.
Mr Shapps said: “I think what people want to know is that they (BP) are being properly taxed, and we’ve been taxing them 75% of their profits through this windfall tax, and that we’ve used that money to pay about £1,500 per household to cover people’s energy bills this last winter.
“It may not have felt that way, but (bills) would have been £1,500 on average higher if we hadn’t taxed the energy companies.
“But we want to make sure that they’re doing their part, but that they have money to carry on investing."
What support is available if you’re struggling to pay your energy bills?
Help is available for households struggling with soaring energy bills, climbing interest rates and rampant inflation.
Check what help you can get with your bills:
By contacting the organisations or people you owe money to, they might agree to help by doing things like:
reducing your payments
giving you more time to pay
Each organisation is different so it’s important to check what help you could get.
If you’ve borrowed money and are struggling with the cost of living, ask your lender for support. They should:
give you advice based on your individual situation
reduce fees and charges
The Citizen's Advice Bureau suggests starting by trying to sort out problems with your energy bills, council tax or housing costs.
These are more urgent than things like credit cards or loans.
Check if you can get extra help or money:
You might be able to claim benefits or increase your current benefits if you’re:
struggling to afford essential things - such as food and housing
sick or disabled
not working
working and on a low income
a pensioner on a low income
a carer
responsible for children
It’s important to check if you can get extra help or support, even if you’re working.
Check what help you can get from your local council:
You can contact your local council - they might help you pay for things like:
your energy and water bills
food
essential items - for example clothes or an oven
If you’re finding things difficult:
You should talk to your GP if your money problems are affecting your mental health. Alternatively you can speak to charities such as Samaritans and Shout.
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