One in seven families miss an essential payment in a single month

Family households are three times more likely to miss an essential payment compared with those without children, according to the Which? Consumer Insight* tracker. 

In our latest survey, 15% of families recorded missing an essential payment - such as a housing, bill, loan or credit card payment - in the month to 8 September. For childless homes, the figure was 5% and the overall UK average was 8.2%.

Here, Which? delves into the latest findings and offers advice on what to do if you're struggling with your finances.

Families cutting back on spending

As well as being more likely to miss payments, families were also more likely than other groups to report making at least one adjustment to cover essential spending in the last month.

Essential spending includes priority payments such as utility bills, housing costs, groceries, school supplies and medicines.

Seven in 10 households with children reported making adjustments such as cutting back on essentials, dipping into savings, selling possessions or borrowing. 

This is significantly higher than the half of households without children.

The financial pinch for parents comes at a time when they may have struggled to foot the bill for uniforms, stationery and other essentials before the start of a new school year. 

• Find out more: where to buy the cheapest school uniform

Fewer people making financial adjustments

A large share of families may be making financial changes, yet there are positive signs for the UK as a whole.

Overall, an estimated 15.1 million households made at least one adjustment to cover essential spending. 

This is the lowest level seen in the last 18 months, suggesting the financial outlook for consumers may be brightening.

It is, however, still significantly higher than the number of households making adjustments in 2020 and 2021 - before the full impact of the cost of living crisis hit people's finances. 

These figures suggest that while some households might be seeing improvements to their financial situation, many remain at serious risk of financial hardship.

Which? calls for support this winter

With winter fast approaching, pressures on household finances are likely to increase. 

Which? is calling on essential businesses – energy firms, broadband providers and supermarkets – to do more to help their customers and ensure they are providing value for money.

The consumer champion says energy firms need to ensure their customer service departments are fully staffed, and telecoms firms need to properly advertise their social tariffs to eligible customers.

Rocio Concha, Which? director of policy and advocacy, said: 'We’d encourage anyone who’s struggling to seek free debt advice and reach out to their bill provider for help.'

What to do if you're struggling to make payments

If you’re finding it hard to keep on top of your bills – whether it be your mortgage, energy payments, or loan – you should contact your provider.

If you’re in debt to your energy supplier you might be able to agree on a payment break, secure more time to pay or gain access to hardship funds. Our guide on what to do if you're struggling to pay your energy bills explains the support you could take.

Our guide on what to do if you can't pay your mortgage outlines the options available if you're a struggling homeowner.  If you're a tenant unable to keep up with your bill, check out our guide on what to do if you can’t afford your rent. 

How to save money on your bills

We've compiled a comprehensive list of 20 ways to save money on your household bills and living costs in 2023.

It includes tips on how to haggle with insurance providers, securing the best remortgaging deal, and saving on fuel. Our findings on the most energy-efficient way to cook and cheap ways to insulate your home are also included.

• Find out more: are you eligible for an insulation grant?

*The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.