Warning millions of UK households missing out on energy bill support as debt climbs to £7bn

Warning millions of UK households missing out on energy bill support as debt climbs to £7bn Watchdog says household energy debt has risen 118% since start of Ukraine war - Bookmark - CommentsGo to comments Millions of households are missing out on support for essential bills such as water, energy and broadband as their debt to firms climbs to more than £7 billion, the public spending watchdog said. The National Audit Office (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 those who are vulnerable or on low incomes could be missing out on support to help manage debt. 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. It concluded that regulators are not aligning their performance measurements with actual consumer experiences and outcomes. While Ofgem and Ofwat had overseen an uptake in registration for company priority services registers (PSR), consumer awareness remained low, while Ofcom did not routinely monitor take up or awareness of support for broadband customers. The watchdog said there had been a marked increase in household energy debt following Russia’s invasion of Ukraine, rising by 118% since 2021. Energy customers on supportive repayment plans owed around £1,000 less than those without one in place, the NAO found. The NAO found regulators had strengthened protections since its last report in 2019, introducing new rules on how companies treated customers and taking enforcement action. But it said the regulators must now make changes to keep pace with consumer needs, finding that customers still struggled to contact their providers and were not always aware of support available to help manage their bills, such as social tariffs and repayment plans. It has recommended that regulators increase awareness of available help such as social tariffs, repayment plans and other support schemes and tackle the drivers of rising debt such as inaccurate billing, delays when people move home and barriers that prevent consumers from switching tariffs. It also called on them to improve how consumers in vulnerable situations are identified and supported, and to make better use of data-sharing across sectors. 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.” Chairman of the Public Accounts Committee Sir Geoffrey Clifton-Brown said: “Price volatility is now the norm across much of the energy sector, and consumers are at the sharp end of this. “Debt to energy companies has more than doubled since 2021, yet far too many households are still not receiving or are even aware of support to manage rising costs. “Regulators have a critical role to play, but today’s NAO report shows regulation is still failing consumers across water, energy and broadband. “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. “While Ofgem, Ofcom and Ofwat have made some progress, they must now act with far greater urgency to ensure consumers get the standard of service they deserve.” An Ofwat spokeswoman said: “We know there is more progress that needs to be made to drive better outcomes for consumers, particularly those experiencing vulnerability and during supply incidents. “Protecting consumers who need extra help remains a key priority for Ofwat, and we continue to work with Defra to improve outcomes for customers in this period of reform of the water sector.” Ofgem said: “Energy debt remains a major challenge, and we are taking action to reset how it is managed. “We continue to work with Government on a targeted Debt Relief Scheme to address historical debt, alongside reforming the process people follow when they move house and set up energy accounts to avoid debt building up. “We are also challenging suppliers to do more – including prioritising accurate billing and early engagement to offer fair, affordable repayment plans, and ensuring they are meeting the needs of the most vulnerable customers.” Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments