More than £7bn is owed to water, broadband and energy companies – and the vast majority of billpayers have no idea that cheaper social tariffs even exist, according to the UK’s spending watchdog.
Total debt on household bills had reached at least £7bn by March last year, the National Audit Office (NAO) said, with estimates suggesting the figure has grown further since. The crisis has been fuelled by soaring energy costs after Russia’s invasion of Ukraine, which drove household energy debt up by 118% since 2021.
“Bill debt exceeds £7bn, yet most customers unaware of available social tariffs, NAO warns.”
Yet only a third of eligible broadband customers and 39% of water customers struggling to pay their bills were aware of social tariffs – discounted packages often available to people on benefits or who are struggling to pay. Energy customers who had agreed repayment plans owed on average £1,000 less than those in debt without such plans, the NAO found.
“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.”
One pensioner, Linda, 70, told the BBC 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 said. “I’m repaying in instalments, but the debt is not going down.” 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.
The NAO report examined the work of the three regulators – Ofgem, Ofcom and Ofwat – and said they could still improve how they identified vulnerable customers and promoted support. Awareness of the Priority Services Register, which helps utility companies identify customers with extra communication, access or safety needs, remained low.
Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee, said wider communications also needed to improve. “It remains 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,” he said.