Rising number of households struggling with payments highlights ongoing financial pressures.

The number of UK households missing essential payments has surged to 2.4 million, reaching levels last seen during the winter months, consumer watchdog Which? has warned. According to the charity’s July consumer insight tracker, the number of households missing or defaulting on critical payments, including housing costs, bills, loans, or credit cards, has significantly increased since May, showing that many continue to face financial struggles even in warmer months.

The data reveals that 1.5 million households missed or defaulted on a household bill such as energy, water, or council tax in the month leading up to July 13. Of those, 65% reported missing multiple bills. Among the missed payments, nearly half (49%) were for water bills, followed closely by energy bills (48%), phone bills (38%), and council tax (34%).

Additionally, approximately 770,000 households missed or defaulted on housing payments, with renters particularly affected—5.7% of renters and 3.4% of mortgage holders reported falling behind.

In response to mounting pressures, 59% of households, equating to 16.7 million people, have made financial adjustments. These include cutting back on essentials, using savings, selling possessions, or borrowing money to cover vital expenses like utilities, housing, groceries, school supplies, and medicine.

Consumer confidence has also dropped significantly, with a 16-point decline over the past month, from +25 in June to +9 in July. Fewer than 20% of people expect their financial situation to improve over the next year, while 37% believe it will worsen.

Rocio Concha, Director of Policy and Advocacy at Which?, stated: “Our research shows that, although inflation may have peaked, the human cost of the cost of living crisis continues to rise. With interest rates expected to increase further, the financial pressures on households are set to grow. We urge anyone struggling to seek free debt advice and reach out to their bill providers for assistance.”

Which? is also calling on essential service providers in sectors like food, energy, and telecoms to do more to help customers navigate this crisis, urging businesses to offer fairer deals and avoid unjust costs during these tough times.