Paying Utility Bills

Utility companies are among the most likely to face a delay in payment of their bills, according to new research from MORI. The survey, for Xansa, aims to give a better understanding of public attitudes to debt, including propensity to pay and prioritisation of household debt payments.

One in six British bill payers (17%) have put off paying a bill by the due date in the past year and six in 10 (59%) admit they may need some kind of reminder before they pay a household bill. Payment of council tax, water, electricity and gas bills are most likely to be put off, while repayment on bank loans, mortgage and rent are least likely to be postponed.

Age has a strong impact on propensity to pay: four in 10 (37%) 16-24 year olds are currently delaying payment on a household bill or have done so in the past year (only four per cent of people over 60 are in the same position). The utility sector [See note 1] is no exception: 14% of people aged 16-24 are putting off a utility bill or have done so in the past year, compared to one per cent of those people over 60.

There is a disparity between which bills people feel should be paid on time, and which bills are actually put off. When asked which bills they feel should be paid on time, utility bills rank as one of the highest priorities, with around 80% saying they should be paid on time, compared to around only 65% saying satellite, mobile phone and store card bills have to be paid on time. In reality however, consumers are in fact less likely to put off paying their satellite, mobile phone and store card bills than their utility bills. This may be because consumers rank utility companies amongst the least persistent for debt collection -- water companies are among the least likely household provider to be seen as persistent.

Note

1. Gas, electricity or water

Technical details

The MORI survey was conducted among a nationally representative sample of 1,919 adults aged 16+, of whom 1,309 (66%) are responsible for paying household bills. Interviews were carried out face-to-face, in home between 2-8 September 2004 across Great Britain. Data are weighted to match known population profile. The survey was commissioned by Xansa.

Topline Results

• A representative sample of 1,919 members of the GB general public aged 16+ were interviewed
• Number of sampling points: 187
• Fieldwork dates: 2-8 September, 2004
• Interviews were conducted face-to-face, in home, using CAPI (Computer Aided Personal Interviewing)
• Quotas were set on gender, housing tenure, age and working status
• To adjust for any variance in the quotas or coverage of individual sampling points, data are weighted by social grade, standard region, unemployment within region, cars in household, and age and working status within gender
• Where figures do not add up to 100%, this is due to computer rounding or multiple answers

Q And which bills have you actually put off paying by the date due in the past year or are you currently putting off? Base: All who are responsible for paying bills (1,309)

Q In general, which ONE of the following prompts or reminders that companies may use would actually encourage you to pay your bills? Base: All who are responsible for paying bills (1,309)

Q If you were unable to pay all your bills by the date due, which bills do you feel would have to be paid on time, which could be put off for a while, and which could be put off indefinitely? Firstly... Base: All who are responsible for paying bills and able to answer for each type of bill

Q From this list, which types of organisations, in your experience, do you think are most persistent in collecting payment of their bills? Base: All who are responsible for paying bills (1,309)