One in 10 (10%) UK adults have missed a utility bill payment in the last six months, Moneyhub Payments has found.

The firm’s recent financial wellbeing survey also revealed that a quarter (24%) of UK adults have missed a payment of some kind in the last six months.

More than three quarters (77%) of those surveyed felt anxious when expecting bills to arrive or be paid, with utility bills causing consumers the most concern. Over half (51%) cited them as the type that caused the most anxiety.

Moneyhub said that escalating utility prices in the UK, combined with the wider cost of living crisis, have become a significant concern for consumers, with households having to work harder to manage their monthly budgets.

The size of this issue has been exemplified by Ofgem’s December 2023 figures, which showed that the UK consumer energy bill debt hit a record £3bn.

Across the types of utility bills, energy bills were found to be the most stressful for consumers, with 41% saying they made them the most anxious. This is followed by water bills (14%) and broadband payments (10%).

Managing director of payments at Moneyhub, Mark Munson, said: "Missed payments are causing significant concern for UK consumers, with utility bills the number one culprit. With energy bills high, there is a real worry that this problem will only worsen without intervention."

When asked what would help them manage their money or reduce instances of missed payments, 38% of UK consumers said that choosing the day of the month direct debits are taken would make a difference.

A warning before payments are expected by over a quarter (28%) of those surveyed and better oversight of their incomings and outgoings (27%) were also key solutions.

In addition, 17% said the ability to pay bills weekly rather than monthly would help them manage their money. With the same percentage (17%) of respondents paid on a weekly basis, this would indicate that such a change could be truly transformative for that group.

Munson added: "Fortunately, there are technologies that utility providers can adopt to improve their offerings to customers and better support when that customer is showing signs of distress. Often customers just need a little extra flexibility to help them get back on their feet, and with Open Banking and Open Finance, providers will be able to identify those struggling and be able to offer them individualised solutions.

"Utility businesses can benefit too by offering alternative payment options tailored to the specific needs of their customers. Companies that offer choice and more control over how consumers pay will reap rewards in improved consumer loyalty, reduced churn and increased customer satisfaction."

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