Citizens Advice Research Shows One in Seven Fall Behind on Essential Household Bills

DEBT WOES - Some one in seven (14%) of people have fallen behind on essential bills - including energy, water, mobile phone and broadband bills, council tax, rent or mortgage payments - the equivalent of seven million people in the UK, according to new research from Citizens Advice.

A poll of 6,004 people, conducted by ICM Unlimited for the charity, also reveals 60% of people with children under 18 report having already cut down on any regular or non-essential spending, to ensure their children don’t go without. 

Citizens Advice’s research indicates the situation is particularly tough for certain groups. Black and ethnic minority (BAME) groups, parents and carers, and people who were furloughed are all more likely to have fallen behind.

• 28% - twice the UK average - of BAME people are behind on essential bills or rent. This rises to 31% for Black people.
• A quarter (26%) of those with children under 18 in their house are behind on essential bills or rent
• 24% of people who were furloughed have fallen behind on essential bills or rent

A majority (62%) of the UK population believe that those who’ve fallen into debt because of coronavirus and lockdown restrictions should get help from the government to pay it back. This view has majority support across all regions of the UK, age groups and socio-economic backgrounds.

The number of people Citizens Advice helps with debt is climbing as economic hardship worsens and protections for people unable to pay essential bills have weakened since the first lockdown. 

Case Study

Stephanie* runs a small holiday letting business and, prior to the pandemic, was making a healthy income. However, because her income was classed as rental income, she was not eligible for any help from the government’s income support schemes. Her income has plummeted to around £500 a month.

Her husband has also been furloughed at 80% of his wage and this, along with her dramatic loss of income, has caused huge financial strain. The family savings have been long since used up and Stephanie has had to take on a bank loan to cover living costs.

At the start of the pandemic, she told her landlord that she was unable to pay her rent. A week later, she was given an eviction notice. The family is struggling to pay the rent in their new property, but Stephanie is scared to speak to her landlord in case the same thing happens again.

Stephanie says:

“A week after telling our landlord we couldn’t pay the rent on time, we were served an eviction notice, so we had to move which cost us money. I’m now trying to figure out how to pay next month's rent. I’m too scared to tell my landlord that I can’t afford the rent as I don't want to be evicted again. It costs money to move which we don't have.

“My outgoings are now even more because of the loan. The money I’m getting at the moment doesn't even cover the council tax and some bills, never mind rent, food and everything else.

“All my savings are gone and I’m at the stage now where I don't know what the next step is. We're not doing Christmas this year, nobody can afford it. We got food from the food bank last week and hopefully we’ll get some next week.

“All I need is someone in the government to look up and say ‘Hold on a minute all these people have been forgotten about. What are they supposed to do?’”

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