A new survey throws light on how perilous some household finances are as energy prices increase despite government interventions.
Research from The Mortgage Lender reveals that 13 per cent of adults have missed an energy bill payment since the start of 2022 and some six per cent say they already cannot afford to pay their routine bills.
Another 16 per cent say they would not be able to afford their energy bill if it went up by a further one to 10 per cent, while another 17 per cent say they would not be able to afford bills rising by 11 to 25 per cent.
Not only can missed payments impact consumers’ current health and safety, but they could also have long-lasting repercussions on their credit scores.
The research found that 14 per cent of adults would consider missing their energy bill payment in the future to cope with rising costs. This rises to a quarter of young people who said they would consider missing their energy bill.
Dramatically, 29 per cent of 18 to 34 year olds admit they have missed an energy bill payment since the start of the year, more than double that of the national average. Similarly, 30 per cent of 18-34-year olds said they have missed a utility payment since the start of the year.
Londoners have been hit hard with nearly a third saying they’ve missed an energy bill payment in 2022.
Peter Beaumont, chief executive of The Mortgage Lender, comments: “There is no denying that we are in difficult times with the cost of living as high as it currently is. For many, the sheer cost of energy and utility bills, or even the thought of them rising, is unnerving. Indeed, some have already had to miss their regular payments in order to get by financially.
“What is perhaps more concerning though, is the number of people who would consider missing them in order to cope with rising costs. This could have a significant impact on an individual’s credit score, and ultimately their ability to access loans such as a mortgage, whether a first-time buyer or an owner re-mortgaging.”
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Utility companies need to sort out their billing and make it fit for purpose.
For example EDF have 2 different Direct Debit options:
Fixed monthly DD and only get a statement twice a year (usually with a hefty balancing payment or refund).
Variable DD to clear the balance every month.
How can anyone budget properly with either of those options?
Having regular, accurate, well presented statements is vital for budgeting. The amount of information on statements is often confusing and badly presented.
I'm with EDF at home, no DDR just an emailed bill once a month. Bulb are a nightmare, just had a property empty for 10 weeks while carrying out repairs, improvements and decorating they wanted me to set up a DDR, no way was I doing that with a bankrupt company being run by receivers
Andrew - paying in that way gives the certainty of only paying for what you use but most companies now charge quite a bit more if you don't have a DD set up. EDF are being a bit secretive about the current tariffs but on the original October pricing it was £23 a year cheaper for the Standing Charge and on an annual usage of 3000kWhs £82 cheaper for the electric if you paid by DD.
Octopus didn't charge any different until the beginning of October but now charge more if you don't have a DD set up.
Are they just bad payers ?
50 year mortgage
40 year survival rate after the 'j@b'
Sorted
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