One in three people have missed payments on vital bills already this year

More than 16 million people across the UK have reportedly missed payments on essential bills this year, with over two million experiencing this setback for the first time.

The findings come during the annual Talk Money Week, highlighting the importance of financial well-being and the stark reality of economic hardship faced by many.

Talk Money Week 2023, an initiative by the Money and Pensions Service (MaPS), is not just a campaign but a critical call to action.

It runs from November 6-10 and aims to encourage UK adults to take that crucial step towards managing their finances more effectively.

The survey of 3,016 UK adults commissioned by MaPS reveals a concerning trend: 30% of respondents have missed at least one payment in 2023. Credit cards and utilities top the list of unpaid expenses, with Council Tax, overdrafts, and loans trailing close behind.

Notably, missed payments on rent and mortgages have also been flagged, though less frequent.

Credit card repayments are the most common bill payment to be missed at 11%, followed by utilities and Council Tax at 10%, and overdrafts or loans at 8%.

For many, these figures aren’t just statistics—they represent a day-to-day struggle to keep up with the escalating cost of living.

The Talk Money Week campaign is addressing this head-on.

MaPS stresses the importance of taking immediate action if individuals find themselves on the brink of missing a payment.

Creditors can often offer alternative solutions, such as revised tariffs or flexible payment arrangements.

Yet, the survey revealed that only 62% would reach out to their creditor, while a concerning 15% would opt to do nothing.

Embarrassment, fear of judgment, and a lack of awareness about the potential help creditors can offer are cited as significant barriers.

These emotions can inhibit taking that critical step towards seeking help.

The statistics further indicate a preference for cutting back on essentials, with two-thirds of people choosing this route over seeking professional advice.

Alarmingly, some would consider accruing further debt as a solution.

Charlotte Jackson, Head of Guidance at the Money and Pensions Service, 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.

“This Talk Money Week, we’re asking people struggling with payments to “do one thing” and act fast. If you think you’ll miss one, speak to your creditor and if it’s already happened, it’s not too late to consider free debt advice. Acting now will help you get some control over what’s happening, find out your options and avoid the devastation that debt can cause.

“It can be really difficult to take that first step, but it can make a massive difference. If you’re unsure where to start, our free and impartial guide on starting the conversation is available now via our MoneyHelper service.”