Working age adults behind with bills by income quintile

This chart shows the proportion of working age adults behind with bills by income quintile from 2010/11 to March 2021. Individuals are grouped into 5 equal-sized bands (quintiles) based on equivalised net household income (adjusted for household size) after housing costs have been deducted from income. Quintile 1 represents the lowest 20% of incomes (the bottom fifth of income) and quintile 5 represents the highest 20% of incomes (the top fifth of income). Here, ‘behind with bills’ includes people that are either behind with ‘some bills’ or behind with ‘all bills’. Income data during the pandemic is not available, so the quintiles from April 2020 onwards are the 2018/19 quintiles. This tells us changes in the financial position of those who were at different parts of the distribution as the pandemic began.  

Being in problem debt can harm people’s physical and mental health by acting as a source of strain and stress, reducing income available for health-promoting goods and services or increasing health-harming behaviours such as problem smoking. Poor health can also increase the possibility of problem debt, for example through employment loss or low income. This can create a cycle of problem debt and poor health. Falling behind with bills can be both an indicator of and contributor to problem debt.  

• The proportion of working age adults behind with bills is much higher for people living in households in the bottom 20% of incomes than for those living in households in the middle or top 20% of incomes, fluctuating between 12% and 17% before the pandemic.  
• In comparison, the proportion of working age adults behind with bills for those living in households in the top 20% of incomes fluctuated between 0.5% and 1.5% before the pandemic. 
• For the bottom and middle fifths of income, the proportion of working adults behind with bills increased immediately after the pandemic, before almost returning to pre-pandemic levels by March 2021. People in the top fifth of income have seen a gradual increase since the start of the pandemic. 
• Before the pandemic, the proportion of working age people behind with bills in the bottom fifth of income was 16%. This rose to 21% in May 2020.  
• For those in the middle fifth of income, the proportion of working age people behind with bills increased from 6% before the pandemic to 10% in July 2020. 
• Although the proportion of working age people behind with bills in the top fifth of income is very small, it did rise from 1.4% before the pandemic to 2.1% in November 2020.  

Working age people in lower income quintiles are more likely be behind with bills than those in higher income quintiles. The temporary Universal Credit and Working Tax Credit increases from the April 2020 to October 2021 uplift prevented many from falling behind with bills and entering poverty. Higher social security would provide a safety net for those on low incomes.  

• The income quintiles are based on net equivalised household income (adjusted for household size) after housing costs have been deducted from income. Individuals are grouped into five equal-sized bands (quintiles). Quintile 1 represents the lowest 20% of incomes and quintile 5 represents the highest 20% of incomes.  
• Individuals were asked whether they are up to date with all their household bills such as electricity, gas, water rates, telephone and other bills or whether they are behind with any of them. The options include ‘up to date with bills’, ‘behind with some bills’ and ‘behind with all bills’. In this analysis, ‘behind with bills’ is a combination of those who are behind with some bills and behind with all bills. 

Source: Institute for Social and Economic Research, Understanding Society Waves 1 to 10 and COVID-19 Survey Waves 1, 2, 4, 5, 8.