Cost-of-living crisis: 2.3 million households missed a basic payment in January, data reveals | UK News

[ad_1]

About 2.3 million households missed a basic payment in January – an increase of 400,000 from the previous month, but similar to previous years.

Principal payments — which include mortgages, rents, loans and credit cards — often peak in January, according to consumer insights tracker Weitch.

The monthly survey of nearly 2,000 people discovered that nearly 59% had made at least one financial adjustment, such as selling items, dipping into savings or cutting back on necessities, to cover their spending.

However, this is down from the peak of 65% in September.

There was also an 11 percentage point increase from a year ago in the number of households deducted from bills and costs for housing, medicine and groceries, from 27% to 38%.

Rocío Concha, which one? The director of policy and advocacy said: “With 2.3 million British households defaulting on their payments in January, and low-income earners hit hardest, consumers will need support more than ever in 2023.

“As the cost-of-living crisis continues to take its toll on household finances, we are calling on companies in essential sectors – such as food, energy and broadband service providers – to do more to help customers get a good deal and avoid unnecessary or unfair costs and fees.”

More pressure could come in the form of increased water bills, after Water UK said prices would rise by 7.5% this year – taking the average cost of water consumption per day to £1.23.

However, the body argues that the price is still cheaper in real terms than it was a decade ago.

The results come one day after one of the biggest industrial strike days in years, as teachers, NHS workers, railway staff and civil servants all walked out on wage negotiations as the cost of living continued to rise.

[ad_2]