Almost a third (30%) of people, equating to 16 million, have missed payments on key households in 2023, the Money and Pensions Service (MaPS) has found.

In its survey of 3,016 UK adults, the group has also found that of those who missed payments, 14% said it was the first year that this has happened.

Credit card repayments were the most common type of payment that was missed (11%), followed by utilities (10%), council tax or rates (10%) and bank overdrafts or loans (8%).

Furthermore, one in 20 (5%) missed rent payments and 4% missed a mortgage payment.

For those who had not missed a bill payment before 2023, utilities (28%) and credit card repayments (27%) were the most common bills missed, with council tax or rate and bank overdrafts or loans reaching 25% and 23% respectively.

As part of Talk Money Week, MaPS is now asking people to "act now" if they’re struggling to make payments. Specifically, the organisations says if you are about to miss a payment, speak to your creditor because they may be able to offer a better tariff, a more flexible payment arrangement or contract a charity who can help.

However, the survey found that less than two thirds (62%) of people would actually talk to their creditor, and one in seven (15%) would do nothing if they were heading for trouble.

For those who have missed payments, MaPS said they should consider taking free debt advice as soon as possible. However, just over a third (37%) of people said they would speak to an organisation offering free help or debt advice if they thought they were going to miss a payment.

Most said they would prefer to cut back on essentials (66%), while others would speak to family and friends (40%).

Head of guidance at the MaPS, Charlotte Jackson, said: "People are struggling this year and as these results suggest, some household budgets are becoming severely stretched. One in seven people currently wouldn’t take any action if they started to struggle and this increases their risk of becoming stuck in the trap of long-term problem debt.

"This Talk Money Week, we’re asking people struggling with payments to “do one thing” and act fast. If you think you’ll miss one, speak to your creditor and if it’s already happened, it’s not too late to consider free debt advice. Acting now will help you get some control over what’s happening, find out your options and avoid the devastation that debt can cause.

"It can be really difficult to take that first step, but it can make a massive difference. If you're unsure where to start, our free and impartial guide on starting the conversation is available now via our MoneyHelper service."

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