An estimated 2.5 million UK households missed payments in January, a significant increase on the month before, as increases in the cost of living start to “hit hard”, research suggests.
The number of households to miss or default on at least one mortgage, rent, loan, credit card or bill payment rose from an estimated 1.7 million in December last year to 2.5 million in January, according to the latest findings from Which?’s consumer insight tracker.
More than half of those surveyed (58%) said they had recently been affected by increased food prices, and 56% said they had been affected by energy price rises.
Just under a fifth (17%) reported a recent increase in their housing costs, and the same proportion reported an increase in the price they pay for broadband and mobile services.
Half of those polled (51%) said they had been putting the heating on less frequently due to energy price rises, and 46% had reduced their usage of lights or appliances around the home.
Of those who had experienced higher food prices, one in 10 (10%) said they had skipped meals, 9% prioritised meals for other family members and 3% had used a food bank.
Which? consumer rights spokesman Adam French said: “Our research shows millions of households have missed or defaulted on payments this month alone.
“This is hugely concerning as it suggests the cost of living crisis is already starting to hit hard, especially for those on lower incomes.
“The Government and businesses must urgently put measures in place to support those struggling to make ends meet.
“People should not be saddled with spiralling debts because of circumstances completely outside their control.”
The consumer insight tracker is an online poll of approximately 2,000 adults conducted monthly by Yonder on behalf of Which?
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