What the gas and electricity arrears of private low-income tenants can tell us about financial stress

This article considers the implications of two under-recognised forms of credit: that formally provided by utilities and that unwillingly provided by private landlords. The article suggests that low-income households use rental arrears as a form of overdraft facility that allows them to manage cashflow, and that this in turn assists in preventing default on electricity/gas bills. The argument is made that observed consumer behaviour indicates that loss of electricity/gas service is a deprivation avoided at almost any cost. Accordingly, better data collection by the HES for example could assist in the development of far more robust financial hardship/stress indicators.