Millions unaware of available support with household bills as debt soars, NAO finds
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Debt to water and energy companies reached more than £7 billion,
while customers are missing out on support to help them manage
debt, such as repayment plans and social tariffs A third of
customers did not find it easy to get in touch with their broadband
providers when things go wrong The NAO says regulators Ofgem, Ofwat
and Ofcom must strengthen support for consumers in vulnerable
circumstances, increase awareness of support and tackle the drivers
of rising debt....Request free trial
Millions of people are missing out on support for essential bills, such as water, energy and broadband, as debt to water and energy companies climbs over £7 billion1 – this is according to a report by the National Audit Office (NAO) published today (10 June). The report examined how Ofcom, Ofwat and Ofgem support consumers in vulnerable circumstances and whether people can access the help they need from providers of essential services. The watchdog found there has been a marked increase in household energy debt, following Russia's invasion of Ukraine, with energy debt more than double what it was in 2021, rising by 118%.2 Since the NAO's last report on this topic in 2019, regulators have strengthened protections, introducing new rules on how companies treat customers and taking enforcement action – for example changing company licences to improve customer service and issuing multi-million-pound fines to providers where service and performance fall short of expectations. Now, NAO finds the regulators must now make changes to keep pace with consumer needs. Consumers still struggle to contact their providers and are not always aware of support available to help manage their bills – such as social tariffs and repayment plans. The NAO found only a third of eligible broadband customers and 39% of water customers who are struggling to pay their bills are aware of social tariffs, meaning people on low incomes and in vulnerable circumstances could be missing out on support to help manage debt. Energy customers on repayment plans owe around £1,000 less than those without one in place. Ofwat and Ofgem have overseen an uptake in registration for company priority services registers (PSR)3, although consumer awareness remains low. The PSR does not extend to the broadband sector, which has separate requirements. Ofcom does not routinely monitor take up or awareness of support. The NAO found regulators are not aligning their performance measurements with actual consumer experiences and outcomes. The NAO recommends regulators:
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.” -------------------------------------- Factsheet: Rising household debt and support gaps – what the NAO found What was this report about? Any of us can find ourselves in vulnerable circumstances at different points in our lives – for example, whether due to ill health, job loss or bereavement. The NAO looked at whether regulators Ofgem, Ofwat and Ofcom are doing enough to make sure energy, water and broadband companies support people in vulnerable circumstances. The figures at a glance:
1. Finding: Millions are missing out on vital support Many consumers are not accessing help that could make bills more manageable, including social tariffs and repayment plans. The NAO found: Only around one-third of eligible broadband customers are aware of social tariffs Only 39% of water customers struggling to pay bills are aware of social tariffs Energy customers on repayment plans owe around £1,000 less than those without them, yet less than half of households (40%) in energy debt have them in place. The NAO says: Regulators need to encourage providers to do more to increase awareness of available support to make sure eligible consumers are not missing out on help. They should also address industry practices - such as inaccurate billing and delays when people move home - which can contribute to rising debt. 2. Finding: Too many consumers struggle to contact providers Difficulties contacting companies are making it harder for consumers to resolve problems and access help. The NAO found:
The NAO says: Regulators must encourage providers to make it easier for people to contact providers through a range of accessible channels that reflect the diverse needs of consumers. 3. Finding: Priority Services Register uptake is inconsistent The Priority Services Registers (PSRs) can help utility companies identify and support customers who have extra communication, access or safety needs - but coverage and coordination are uneven across services. - Customers registered on energy PSRs reported higher satisfaction levels than those not registered. - PSRs are not used in the broadband sector. - Data-sharing between sectors, including water and energy, remains limited. The NAO says: regulators should strengthen how consumers in vulnerable circumstances are identified and supported, including improving data-sharing across sectors to have better uptake for the PSR.
Rising household energy debt and low awareness of support available mean many customers are at risk of falling further behind on essential bills. When people cannot access help early – or struggle to contact providers – small issues can quickly escalate into serious financial hardship. Gaps in support, low take-up of schemes like social tariffs, and inconsistent systems across sectors mean that help is not reaching those who need it most – and this is particularly heightened during periods of cost-of-living pressure. Stronger, more joined-up regulation could help ensure that customers in vulnerable circumstances are identified earlier, supported more effectively and protected from avoidable debt – improving outcomes for millions of households.
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