UK households are still struggling to pay for essential bills and defaults on these payments are at their highest since winter last year, research from Which? found.
Some 2.4 million households missed out on paying bills for things like utilities, credit cards, loans and broadband in the month to 13 July, the consumer champion revealed, pointing out 1.5 million of the defaults were in relation to energy, water and council tax.
“Though inflation might have peaked, the human cost of the cost-of-living crisis continues to rise,” said Rocio Concha, director of policy and advocacy at Which?
Interest rates are expected to rise again on Thursday and Concha said this will only add to the pressure households are facing.
She implored energy, telecom and food providers to “do more to help customers” by removing unfair costs and helping consumers find the best deal.
Debates between analysts are still ongoing on whether the Bank of England will raise interest rates by 25 or 50 basis points - analysts at UBS reckon the latter is more likely.
Ofgem’s energy price cap has been falling since the start of 2023, however, a spike in customers defaulting on utility bills could result in the regulator raising the ceiling to help companies recoup lost revenues.