Households in arrears

What does this graph show?

This graph looks at households in arrears with bills. These bills cover all utilities, council tax and rent, but not mortgage repayments.

In 2008, 8% of households in London (around 230,000) were in arrears with their bills, compared to 7% in the North West, the region with the next highest rate, and 5% in the South East, with the lowest rate.

The proportion of households with arrears of less than £500 is no different in London than in the North West, Yorkshire or the East Midlands. But the proportion of households in London who are substantially in arrears (i.e. more than £500) is, at 4%, higher than any other region.

So, although the average unsecured debt in London is no higher than elsewhere in England, here we see that on a far more pressing measure of debt - one which can result in eviction or being cut off from an essential utility - Londoners are at higher risk.

It is important to consider the fact that London has higher housing costs than elsewhere, possibly contributing to the higher value of arrears.

Additional information

In London and elsewhere, workless households are far more likely to have trouble paying bills than working households. Around one in five workless households in London are behind with at least one bill, four times as high as for households where all the adults are in paid work. One in ten workless households are behind with two or more bills. Given, then, the recent increases in unemployment, it follows that more households are now falling behind with their bills.

Data used

ONS Wealth and Assets Survey 2006-08

Indicator last updated: 18 October 2011