MILLIONS of households missed their mortgage payments and energy bills this month, research shows.
Consumer group Which? said around 2.5 million people failed to make ends meet in March as the cost of living continues to soar.
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People missed credit card and loan repayments, rent, mortgage payments and millions couldn’t afford to pay their energy bills.
More pain is set to come in the next couple of weeks as companies hike broadband, mobile, energy, water and council tax charges by as much as 14% in April – in line with rampant inflation.
Which? said government and companies providing essential services such as water or electricity must not abandon those who are struggling with money.
Rocio Concha, Which? director of policy and advocacy, said: “Providers must step up and help people as much as possible.”
She added: “Millions of households are struggling to get their finances on track amid huge pressure on the cost of living.
“This should set off alarm bells, particularly as painful increases to many essential bills are due to take effect in a matter of days.”
What bills are going up in April 2023?
Some of the cost of living payments from the government will stop at the end of next week.
This includes the energy bill support scheme which has seen £67 knocked off all household energy bills every month since October.
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Even with the energy price guarantee frozen until June 30, most people will see their energy bills rise next month.
Car tax is set to rise by more than 10% taking the annual premium for a five-year-old Volkswagen Polo with a two-litre petrol engine from £230 to £253.
Mobile, phone and broadband bills rise every April as providers up their charges in line with inflation.
Depending on which inflation measure they use – check in your contract – this would take a monthly bill of £50 up to £55 based on consumer price inflation and £56.70 if they use retail price inflation.
Councils are allowed to hike council tax by up to 5% from April and the Office for Budget Responsibility said bills will go up by £75 a year on average.
Water is also going to get more expensive with those living in England and Wales seeing a 7.5% hike next month – equivalent to £31 according to Water UK.
In Scotland, water bills are going up by 5% – around £19 a year.
‘This is making me miserable all the time’
Even where people are managing to keep up with bills, three out of five said they’d been forced to cut back on non-essential spending to afford the mortgage, groceries and other day-to-day basics.
Others have raided savings, sold their possessions, upped their spending on credit cards and taken out loans to pay the bills.
As part of its research Which? spoke to more than 2,000 people.
One, a 51-year-old man from the southeast of England, said he found it a struggle to pay bills and afford food.
He said: “There is no money for anything but the essentials and sometimes not even enough for those. This is making me miserable all the time and making my mental health even worse.”
Another, a 40-year-old woman from Scotland, said she is anxious about the future and struggling to pay upcoming bills.
A 73-year-old woman from Northern Ireland said she was finding it difficult to heat her home, buy food and pay bills.
And a 49-year-old man from the south-west of England said he is now spending more than his income each month.
He added: “I’ve had to put some bills on hold and have had to cut my spending on groceries. I’m also borrowing from family from time to time.”
Where to get help with bills or debt
A range of cost-of-living support is available. People can visit the helpforhouseholds.campaign.gov.uk for more information.
As part of the support being given, millions of households across the UK will automatically receive a £301 payment from the Department for Work and Pensions (DWP) between April 25 and May 17.
The payment reference for bank accounts will be “DWP COLP”, along with the claimant’s national insurance number.
It is the first of three payments, totalling up to £900, for those eligible and on means-tested benefits, such as universal credit or pension credit, in 2023/24.
Welfare Assistance schemes
Many local councils have Welfare Assistance schemes to help struggling families.
Help available varies, but you could get free cash, food vouchers, and help for bills like rent and energy.
Check with your council to see whether you are eligible and what you can claim.
Household Support Fund
This is another scheme you can access through your local council.
It’s designed to help those in most need with payments towards the rising cost of food, energy, and water bills.
Check with your council directly to see what’s on offer as some share money with charities which can then give you cash or food vouchers.
Some councils restrict how often you can apply for money through this scheme to once a year, so double-check.
Check your benefits entitlement
Even though the government is stopping much of the cost of living help currently on offer, some people will still be able to get financial support.
If you claim pension credit, income support or universal credit you may be entitled to further cost of living payments.
Depending on other tax credits or benefits you already get, you could get either three or five further payments.
You can find free-to-use online benefits calculators to work out what you’re entitled to.
Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.
Debt charity StepChange also has a benefits checker which is free to use and won’t record your results.
Make sure you have key financial information to hand, such as bank and savings statements, and information on pensions and existing benefits.
If you live with a partner or family, get their basic financial information together too as this could affect your claim.
Contact your provider
All energy suppliers, mortgage lenders and other essential services providers will help you if you’re struggling to keep up with bills.
Every company has a different policy but it’s always worth contacting them directly to ask for help – either from a hardship fund or by giving you more time to pay.
Even if you’re not in trouble yet but you’re worried you might be soon, call your energy company, broadband provider or lender to get a plan in place.
Free and confidential debt advice
There are several charities and services that offer free help and advice if you’re worried about money.
It’s always best to contact one of these services before thinking about debt consolidation or using a debt adviser who will likely charge you.
Citizens Advice is a free and impartial service which will help you come up with a plan to get on top of your debt including which payments to prioritise and how to reduce your living costs.
The organisation’s website has a useful page with advice on many aspects of debt, but you can contact them directly by phone, online or in person for more personalised help.
StepChange is another free advice service offering support and guidance online or over the phone, and it’s completely confidential.
You’ll need to provide details of your debts, income and household spending to get a clear picture of where your money goes.
Where possible, their advisers will help you come up with a plan to repay all your debts but in a way that you can afford.
National Debtline is a charity run offering free and confidential advice to people in England, Wales and Scotland.
You can contact it online or over the phone on 0808 808 4000, between 9am and 8pm Monday to Friday, and 9.30am to 1pm on Saturdays.
An adviser will help you work out what you can afford to repay, and help you decide on the best solution for your debt.
