More than £7bn in unpaid bills and charges was owed to water, broadband and energy companies by last March – and the total has grown since, according to the UK’s spending watchdog. Yet the majority of billpayers do not know that support such as repayment plans and cheaper social tariffs is available.
The National Audit Office (NAO) found that only a third of eligible broadband customers and 39% of water customers struggling to pay were aware of social tariffs – discounted packages for people on benefits or in financial difficulty. Energy customers who had agreed repayment plans owed £1,000 less on average than those in debt who had not.
“£7bn owed to utilities but most billpayers unaware of social tariffs and repayment plans, NAO warns.”
“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 report examined the work of Ofgem, Ofcom and Ofwat, the regulators for energy, telecoms and water. It found that household energy debt had jumped by 118% since 2021, following Russia’s invasion of Ukraine. Regulators could still improve how they identify vulnerable customers and promote support, the NAO said.
Linda, 70, who asked to remain anonymous because she was embarrassed about her debts – amounting to hundreds of pounds – told the BBC: “I could afford my bills before, but I’m really struggling now. I’ve never been in debt before. I’m repaying in instalments, but the debt is not going down.” She relies on the 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 her pension arrived, but her supplier had been helpful after she told them she was struggling.
Awareness of the Priority Services Register, a UK-wide scheme to help utility companies identify customers with extra communication, access or safety needs – such as during a power cut – remained low, the NAO said. Sir Geoffrey Clifton-Brown, chair of 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.
With billions already owed and the trend rising, regulators face growing pressure to ensure that the help that exists actually reaches those who need it.