New findings from Moneyhub Payments indicate that 1 in 10 UK adults have missed a utility bill payment in the past six months, underscoring the necessity for more adaptable payment options.
Over 24% of UK adults have missed payments of any kind during this time, with electricity bills being a significant worry for over 10% of respondents, according to Moneyhub’s most recent financial wellbeing study.
According to the survey, 51% of respondents said that they are most distressed by utility bills, accounting for 77% of respondents’ worry when bills are due.
The soaring cost of living, coupled with increased utility expenses, poses challenges for household budgets. Ofgem’s December 2023 report, revealing UK consumer energy bill debt hitting £3 billion, underscores the severity of the issue. Energy bills cause the most stress for 41% of consumers, followed by water costs (14%) and broadband bills (10%).
Utility companies can address these challenges by offering better financial oversight, payment reminders, and flexible Direct Debit scheduling. Open Banking and Open Finance payments provide clients with more flexibility, allowing providers to assist them better and mitigate missed payments and financial strain, thereby enhancing clients’ financial security and satisfaction with essential service providers.
Moneyhub MD of payments Mark Munson says: “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.
“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.”
