The Which? June consumer insight tracker found that 1.3 million households missed or defaulted on a household bill such as energy, water or council tax, in the month to 9 June.

Missed bill payments have been consistently high since January 2022, showing just how many people are struggling to make ends meet every month.

Which? found that six in 10 of those missing a bill payment reported that they missed more than one payment.

The bills most often defaulted on

Among those who missed one or more bills, two in five (42%) did not pay their energy bill, four in 10 missed their council tax payment, 38% could not afford their water bill and a third struggled to pay their broadband and/or television package bills.

Which? also estimated that 560,000 households missed or defaulted on a housing payment in the month to 9 June. One in 20 renters and 1.4% of mortgage holders missed a housing payment.

When combined the number of households who missed a housing payment or household bill came to more than two million.

Adjustments to household budgets

More than half (56%) of households reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the past month. This equates to an estimated 15.8 million households.

Adjustments included cutting back on essentials, dipping into savings, selling possessions or borrowing. This is lower than the levels seen over winter but much higher than the 40% seen two years ago before the cost-of-living crisis began.

Businesses urged to do more to help

With the Bank of England expected to raise interest rates again in August and energy bills predicted to remain at high levels until the end of the decade, Which? warned that Brits will continue to face financial pressures.

The consumer champion said that businesses must do “everything in their power” to ease pressures on household budgets and provide value for money.

For example, Which? said that supermarkets need to make budget line items widely available, particularly in convenience stores. Earlier this week, Morrisons announced that it will sell its budget products in its smaller Morrisons Daily stores, but most supermarkets don’t do this. See YourMoney.com’s Supermarket sweep: The grocery deals and discounts to cut your food bill for details of what other grocery chains are offering.

Which? also said that energy firms need to ensure their customer service departments are fully staffed and able to support any customers who are struggling to make ends meet, while telecoms firms need to properly advertise their social tariffs to eligible customers.

What to do if you can’t afford to pay your bills

Rocio Concha, Which? director of policy and advocacy, said: “It’s incredibly worrying that millions of households are missing bill payments every month. 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 providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.”

If you are missing or struggling to afford essential payments – such as energy, credit card or mortgage payments – you should speak to your provider immediately for help. There might be discounted tariffs or reductions you are eligible for, or your supplier might suggest an affordable payment plan.

Energy providers are not allowed to just disconnect people and should help you find a payment plan you can afford. Some offer additional hardship funds for certain customer groups.

If you are struggling to afford your mortgage, speak to your lender as soon as possible. Your lender might offer a payment holiday, extend the term to lower the monthly payment, or switch you to interest-only repayments on a temporary basis. Renters should speak to their landlords about their situation and ask if they are able to offer temporary help.