A report from Citizens Advice has revealed that low-income households in the UK are missing out on nearly £2 billion worth of support due to inconsistent access to social tariffs. The report calls for greater government intervention to end the postcode lottery that leaves some households receiving significantly more assistance than others.
A Patchwork of Support Across the UK
The report highlights the significant variation in support available to households, depending on their location. Households in certain areas of the UK receive much more support for essential bills like water and broadband than others, creating an unequal system that undermines efforts to help those who need it most.
Citizens Advice found that identical households are receiving “completely different” levels of support based on their postcode, which is causing many to miss out on essential savings.
The Financial Impact of Missed Support
Many households are losing out on savings that could amount to at least £350 a year. Citizens Advice warns that over £1.9 billion in unclaimed support exists across the water and broadband sectors alone. This missed support could significantly alleviate financial pressures for struggling households.
In fact, the report found that half of British adults (around 25 million people) had cut back on spending for essential services, including water, broadband, and energy. Almost one in seven adults admitted that they had cut back so severely that it impacted their quality of life, with some even disconnecting from home broadband or canceling car insurance.
Government Action Needed to End Postcode Lottery
Citizens Advice is urging the government to take immediate action by ensuring that suppliers are proactive in offering social tariffs to eligible customers. The service has called for better data-sharing between firms and government departments to ensure those entitled to assistance receive the help they need.
2.8 million households are expected to spend more than 20% of their disposable income on water, energy, and broadband costs in the coming year, a sharp increase from previous years.
Challenges in Accessing Social Tariffs
Many people are unaware of the existence of social tariffs, while others face significant barriers in accessing them. Citizens Advice frontline staff have reported that clients often need assistance in applying for social tariffs, further exacerbating the difficulties faced by low-income households.
Some have even reported needing external help to complete applications for the support, as the process can be too complicated to navigate without assistance.
A Call for Equity in Essential Services
The report concludes by stressing the importance of making social tariffs consistent across essential services, including water and broadband, to ensure that all households have equal access to support, no matter where they live. Ending the postcode lottery is seen as a critical step toward a fairer and more effective system of financial assistance for vulnerable households.
If the government takes action, it could ensure that more people get the support they’re entitled to without delay or confusion, as noted by The Epoch Times.
