More than £7bn is owed to water, broadband and energy companies by customers who are struggling to pay – and the majority do not know support exists. The figure, which was recorded by March last year, is likely to have grown since, according to the National Audit Office (NAO), which said household energy debt had jumped 118% since Russia’s invasion of Ukraine.
Linda, 70, said she was embarrassed enough about her debts – amounting to hundreds of pounds – to want to remain anonymous. “I could afford my bills before, but I’m really struggling now. I’ve never been in debt before,” she told the BBC. She relies on a state pension and said it never stretched far enough to cover her utility bills. Another pensioner told the BBC the credit on her energy meter often ran out three or four days before she received her pension, but said her supplier had been helpful after she told them she was struggling.
“Over £7bn in unpaid bills owed to water, broadband and energy firms, but most customers unaware of support.”
Most people are unaware of repayment plans and cheaper social tariffs – discounted packages on essential bills often available to those on benefits or struggling to pay. Only a third of eligible broadband customers and 39% of water customers know about them, the NAO found. Energy customers on repayment plans owed £1,000 less on average than those in debt without such plans.
“Regulators have made progress to support consumers, but they’re not keeping up with the pressure now facing millions of households,” said Gareth Davies, head of the NAO. “With debt rising sharply, it’s more important than ever to make regulation work so that people know what support is available and can contact essential providers when they need to.”
The NAO report examined the work of the three sector regulators – Ofgem, Ofcom and Ofwat – and said they could still improve how they identify vulnerable customers and promote support. Awareness of the Priority Services Register, which helps utility companies identify customers with extra communication, access or safety needs, remains low.
Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee, said it remained “too difficult for consumers to contact companies when things go wrong, financial support is poorly promoted, while basic billing errors are pushing households further into debt”. Linda, who is repaying in instalments, said: “The debt is not going down.”