Millions of households across the UK are missing out on support with water, energy and broadband bills, even as debt owed to utility companies exceeds £7 billion. According to the National Audit Office (NAO), low awareness of available assistance is leaving many people without access to schemes that could help them manage rising costs.
The report examines how Ofgem, Ofwat and Ofcom support consumers in vulnerable circumstances and whether people can obtain the help they need from providers of essential services. It comes amid continuing concerns about affordability, customer service and growing levels of debt across several sectors.
Low Awareness Leaves Many Eligible Households Without Support
According to the NAO, only around a third of eligible broadband customers are aware of social tariffs, while awareness among water customers struggling to pay their bills stands at 39%. Social tariffs are discounted packages intended to support people on low incomes or in vulnerable circumstances.
The watchdog found that consumers are often unaware of the support available to them, including repayment plans and other assistance schemes. It also reported that people continue to face difficulties contacting providers when problems arise. In the broadband sector, a third of customers did not find it easy to get in touch with their provider when things went wrong.
The NAO noted that Ofwat and Ofgem have overseen increased registration for Priority Services Registers, which help utility companies identify customers with additional communication, access or safety needs. Even so, awareness of these services remains limited. The broadband sector does not use the same system, and the report states that Ofcom does not routinely monitor take-up or awareness of support measures.
According to the watchdog, regulators have strengthened consumer protections since its previous review in 2019. These measures have included new rules governing how companies treat customers and enforcement action against firms whose performance fell below expectations. The report concludes, though, that regulators must now adapt further to meet changing consumer needs.
Rising Energy Debt Increases Pressure on Regulators
One of the report’s most striking findings concerns household energy debt. According to the NAO, energy debt has risen by 118% since 2021 following Russia’s invasion of Ukraine, more than doubling over the period.
The watchdog also found evidence that repayment arrangements can make a significant difference. Energy customers using supportive repayment plans owed around £1,000 less than those without such arrangements in place.
The NAO said regulators are not sufficiently aligning their performance measures with the experiences and outcomes of consumers. It warned that an emphasis on activities rather than results risks overlooking whether support is genuinely improving people’s circumstances.
Among its recommendations, the watchdog called on regulators to increase awareness of social tariffs, repayment plans and other support schemes. It also urged them to tackle factors contributing to debt, including inaccurate billing, delays when people move home and barriers that prevent consumers from switching tariffs.
NAO head Gareth Davies said regulators had made progress but were “not keeping up with the pressure now facing millions of households”. He added that, with debt rising sharply, it is increasingly important that people know what support is available and can contact essential service providers when they need assistance.
