NAO finds £7bn water and energy debt, many miss support

Household debt to water and energy companies has surpassed 7 billion pounds, with millions of customers missing out on vital support to manage their bills, according to a report published on June 10 by the National Audit Office. The public spending watchdog found that regulators are failing to keep pace with consumer needs, leaving many unaware of available help and struggling to contact their essential service providers.

The report examined the performance of regulators Ofgem, Ofwat, and Ofcom in protecting consumers in vulnerable circumstances. It found a sharp increase in household energy debt, which has more than doubled since 2021, rising by 118 percent following Russia's invasion of Ukraine. Water accounts in debt now number four million, totaling nearly 3 billion pounds.

A central finding is the widespread lack of awareness of support schemes. Only 39 percent of eligible water customers and a third of eligible broadband customers who struggle to pay are aware of social tariffs, which offer discounted rates. Similarly, fewer than half of households in energy debt have a repayment plan in place, despite evidence that customers on such plans owe around 1,000 pounds less on...