15% UK households behind on rent, tax, or water bills

UK households are struggling to pay their bills and continue to fall behind. The 3 critical expenses of council tax, water bills as well as rent that are essential to UK families are the most in arrears. In total, about 15% of households in the UK (or 3.6 million households) are in arrears on one or more of those bills according to the Universities of Birmingham and Lincoln report.

This does not include people who are in food or fuel (heating) bill poverty. If those numbers are tallied up for people who are behind on those household expenses, there would even be more people in arrears. Fuel bills, heating costs, groceries, mortgages and other living costs are also major financial challenges.

Families behind on their bills in poverty are working

Many of those families in the UK who are in arrears and/or in poverty are employed. The survey from Universities of Birmingham and Lincoln shows that of those UK families who are in poverty, 8 million of them have one or more people who are employed. The survey indicates that having on job is just not enough to keep up with the bills.

The fact people are working shows the wages are not enough. It also shows the high cost of living in the UK, including in London. Even with one family member working to make ends meet, they are still in arrears.

Food poverty

In addition to the 15% that are behind on their rent, council tax or water bills, food poverty is also a major crisis in the UK. The Universities of Birmingham and Lincoln report touches on this. There is also data from Trussell Trust as well as Oxfam and Church Action on Poverty that show the struggles around buying healthy food.

The survey and report data shows challenges there too. 500,000 people rely on free food banks for parcels of groceries. In addition, about 6 million people (or 10 per cent of the population) struggles to buy the food they need. Of those 2 million are undernourished. This means that they are not eating healthy enough and getting the vitamins, calories, and nutrition they need.

Bailiffs are pursing the arrears

To make matters even worse, the bills that are in arrears are being pursued by bailiffs. Survey data from Universities of Birmingham and Lincoln shows that more than 2 million people have been contacted by bailiffs. The reason this is bad is that many use aggressive debt collection practices in order to try to collect the arrears, whether rent or council tax.

The bailiffs are also pursuing other bills too. About 18% of the population is struggling with their credit card bills according to StepChange. This places more hardship on households. As all debt leads to rent and council tax problems.

2019 Universities of Birmingham and Lincoln Report

The university report is bad news for the UK. With the economy still growing (albeit slowly), and the UK unemployment rate at a 44 year low of 3.8%, the fact that about 15 per cent of households are still struggling to pay their bills is a negative. There are so many jobs out there for people of all skills. But the jobs may not be the highest paying wages, but they should be enough to cover basic living expenses.

StepChange is a national non-profit that helps people who are in debt. They indicate that the Universities of Birmingham and Lincoln show financial distress in the UK. StepChange is even more worried if there is a no deal Brexit. If Brexit is a messy deal, or if the economy turns for the worse, the 15% who are struggling to pay their bills now will increase to a higher number.