Millions of households across the UK are missing out on vital cost of living support for essential services like energy, water, and broadband. According to the National Audit Office (NAO), debt owed to these service providers has now exceeded £7 billion. Alarmingly, only a third of eligible broadband customers and 39% of water customers struggling to pay bills know about social tariffs designed to ease their financial burdens.
The NAO’s report scrutinized how regulators—Ofcom, Ofwat, and Ofgem—help vulnerable consumers access assistance from their service providers. The investigation found that these regulators are not effectively aligning their performance metrics with the real experiences and outcomes faced by consumers.
While registration for priority services registers (PSRs) has improved under Ofgem and Ofwat’s oversight, awareness among consumers remains worryingly low. Ofcom, meanwhile, does not regularly monitor the uptake or awareness of broadband support schemes. Since Russia’s invasion of Ukraine, energy debt jumped by 118% from 2021 levels.
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The NAO found that energy customers enrolled in supportive repayment plans owe about £1,000 less on average than those without such plans. Since 2019, regulators have bolstered protections—introducing new rules governing how companies treat customers and enforcing compliance—but consumer struggles persist.
Many still find it difficult to contact providers or learn about available help, such as social tariffs and repayment schemes. The NAO advises regulators to raise awareness of these supports, tackle root causes of mounting debt—like inaccurate billing, move-in delays, and switching barriers—and improve how vulnerable customers are identified and assisted. Enhanced data sharing between sectors is also recommended.
Gareth Davies, head of the NAO, emphasized: “Although progress has been made, regulators are falling behind the growing pressures faced by millions of households. With debt soaring, effective regulation is crucial so that people know about available support and can reach essential providers when needed.”
Sir Geoffrey Clifton-Brown, chairman of the Public Accounts Committee, added: “Volatile prices have become the norm in the energy sector, pushing many consumers into debt. Despite this, too few receive or even know about support options. The report reveals ongoing failures in water, energy, and broadband regulation—poor communication, weak promotion of financial help, and billing errors are leaving households worse off.”
Responding, Ofwat noted its commitment to protecting vulnerable consumers and working with government to improve sector outcomes amid ongoing reforms. Ofgem stated it is addressing energy debt challenges through government collaboration on a Debt Relief Scheme, reforms to the moving home process, and urging suppliers to provide accurate billing and fair repayment plans that more effectively support vulnerable customers.