Help with an overdue essential bill for low-income households

A red reminder for council tax, an energy arrears letter, a water bill you have been putting off: when money is short, essential bills fall behind and the letters keep coming. It is tempting to ignore them or to grab a quick loan to make the problem go away. Neither usually works. The most effective response is to work out which bills matter most, contact the creditors early, and get free help that can freeze action and reduce what you pay.

This page is for anyone in the UK with an overdue household bill and a tight budget. It focuses on what to do in the next few days and weeks. For detail on specific bills, see our pages on water bill support and paying electricity bills.

First, sort priority from non-priority bills

Debt advisers divide bills by the consequences of not paying, not by the amount owed.

Priority bills

• Rent and mortgage: you could lose your home.
• Council tax: councils can obtain a liability order and use enforcement agents, or take money from wages or benefits. In England and Wales, falling behind can also mean losing the right to pay in instalments.
• Gas and electricity: a supplier can, in limited circumstances, install a prepayment meter or ultimately disconnect.
• TV licence, court fines and child maintenance: these can lead to court action.

Non-priority bills

Broadband, mobile phones, credit cards, catalogues and most loans. Missing them can harm your credit file and lead to collection, but not to losing your home or essential supply. Household water in England and Wales cannot be disconnected, though arrears still need dealing with.

Deal with priority bills first, even if a non-priority creditor is chasing harder.

A common trap is paying whoever phones most often or sounds most threatening. Debt collectors for credit cards and catalogues can be persistent, but they cannot take your home or switch off your supply. If you pay them first and then fall further behind on council tax or rent, the consequences are far more serious. Write down every bill, the amount overdue and the date of the latest letter, then work through the priority list in order.

Contact the creditor before things escalate

Most creditors would rather agree a plan than take enforcement action. When you call or write:

• explain your situation honestly, including any health condition, disability or caring role;
• offer what you can genuinely afford, based on a realistic budget;
• ask them to hold action while you get advice;
• ask about hardship funds, social tariffs or discounts;
• keep a note of who you spoke to and what was agreed.

Energy suppliers must consider your ability to pay under Ofgem rules. Water companies run social tariffs and assistance schemes. Councils can backdate Council Tax Reduction in some cases, which may reduce what you owe.

Get free debt advice and Breathing Space

A free debt adviser can negotiate on your behalf, prepare a budget creditors accept, and check whether some of the debt should be written off or reduced. Reliable free services include StepChange, National Debtline, Citizens Advice, Christians Against Poverty and the government-backed MoneyHelper service.

In England and Wales, a debt adviser can apply for Breathing Space, a scheme that pauses most enforcement action, and freezes interest and charges, for 60 days while you get help. A longer version exists for people receiving mental health crisis treatment. Scotland has its own statutory moratorium, registered with the Accountant in Bankruptcy through an adviser. Advisers can also discuss longer-term solutions such as a debt management plan, debt relief order or, in Scotland, other formal options.

Find money you are entitled to

Increasing your income may be the most effective way to clear an overdue bill. Ask an adviser for a full benefits check: you may be missing Universal Credit, Pension Credit, disability benefits or Council Tax Reduction. Then look at one-off help:

• your council's crisis support or local welfare scheme (Scottish Welfare Fund, Discretionary Assistance Fund in Wales, Discretionary Support in Northern Ireland);
• energy supplier hardship funds and independent energy trusts;
• charitable grants found through Turn2us or your adviser.

If you are on benefits, some essential bills can be paid through deductions from your benefit (sometimes called Fuel Direct or Water Direct). This can be useful, but check the deduction leaves you enough to live on.

Checklist for an overdue bill

• Open every letter and note deadlines.
• List all bills and mark priority ones.
• Write a simple monthly budget of income and essential spending.
• Contact the creditor and ask to pause action.
• Book free debt advice and ask about Breathing Space.
• Apply for Council Tax Reduction, social tariffs and grants.
• Never ignore court papers: respond by the deadline.

Borrowing to pay a bill: a last resort

A loan to clear arrears simply replaces one debt with another, often with higher costs and fewer protections. Council tax and energy creditors have to follow rules on affordable repayment; a high-cost lender's priority is its own repayment. If you do borrow, start with interest-free options: help from family, a Universal Credit Budgeting Advance where eligible, or a no-interest loan scheme if one operates in your area. A credit union is usually much cheaper than payday or doorstep lenders. Always compare the APR and total repayable. Our page on urgent debt repayment help looks at what to do if several debts are pressing at once.

Warning signs of scams

People with overdue bills are targeted by scams. Be suspicious of texts or calls threatening immediate cut-off unless you pay by bank transfer, "debt help" firms that charge fees for what free charities do, and lenders who promise a loan regardless of your credit record in exchange for an upfront fee. Check firms on the FCA Financial Services Register. If an unlicensed lender is pressuring you, contact Stop Loan Sharks.