More than £7bn in unpaid bills and charges was owed to water, broadband, and energy companies by last March – and the total has grown sharply since, according to the UK’s spending watchdog. Yet the majority of billpayers have no idea that cheaper tariffs and repayment plans even exist.
The National Audit Office (NAO) said only a third of eligible broadband customers and 39% of water customers who were struggling to pay were aware of social tariffs – discounted packages often available to people on benefits or in financial hardship. Energy customers already on repayment plans owed £1,000 less on average than those in debt who had not sought help.
“Over £7bn in bill debt owed, but most customers unaware of support like social tariffs.”
Linda, a 70-year-old pensioner who asked to remain anonymous because she was embarrassed by her debts of hundreds of pounds, told the BBC her energy meter credit often ran out three or four days before her pension arrived. “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 said her supplier had been helpful once she told them she was struggling – but she was not alone in keeping quiet.
Gareth Davies, head of the NAO, said: “Regulators have made progress to support consumers, but they’re not keeping up with the pressure now facing millions of households. 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 watchdog’s report examined the work of the three sector regulators – Ofgem, Ofcom, and Ofwat – and found household energy debt had jumped 118% since Russia’s invasion of Ukraine. It said regulators could still improve how they identified vulnerable customers and promoted available support.
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 – also remained low.
Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee, said: “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.”
One pensioner told the BBC her credit often ran out days before her pension – a small window of crisis that cheaper tariffs and better communication might close. But for now, millions remain in the dark about support that could ease the burden.