Bill debt soars but many don't know help is available
UK household debt to utilities has topped £7bn, but many people do not know cheaper tariffs and repayment help exist.
Intelligence analysis by GPT-5.4 Mini
The UK’s spending watchdog says debt to water, broadband and energy firms has surged, while awareness of support options remains low. Regulators are being urged to do more to help vulnerable customers find repayment plans, social tariffs and other protections.
Some families owe a lot on their water, internet, and energy bills, but many do not know help exists. It is like having a school backpack that is too heavy, while a teacher is offering a way to carry part of it, but nobody hears the announcement.
Analysis
What the NAO found
The National Audit Office says more than £7bn in bills and charges was owed by March last year, and estimates suggest the total has since grown. The debt spans water, broadband and energy customers, with the watchdog warning that many people are not aware of the help available to them.
Support exists, but awareness is low
The report says repayment plans and cheaper social tariffs are available for people in debt, but only a minority of customers who are struggling know about them. The NAO said only a third of eligible broadband customers and 39% of water customers were aware of social tariffs. These discounted packages can apply to essential services such as water, energy and broadband, and are often aimed at people on benefits or those struggling to pay.
For energy customers, the watchdog said those on repayment plans owed about £1,000 less on average than those in debt without one. That suggests early contact with suppliers can make a material difference.
Where the pressure is coming from
The NAO said household energy debt has risen sharply since Russia’s invasion of Ukraine, up 118% since 2021. It also said regulators could do more to identify vulnerable customers and promote support, including the Priority Services Register, which helps utility companies support people with extra communication, access or safety needs.
Regulator response
The report covers Ofgem, Ofcom and Ofwat. Gareth Davies, head of the NAO, said regulators have made progress but are not keeping pace with the pressure facing millions of households. Sir Geoffrey Clifton-Brown, chair of the Commons Public Accounts Committee, said billing errors and weak promotion of support are pushing households further into debt. The regulators said helping vulnerable customers is a priority and that reforms are under way, but they acknowledged there is more to do.
Key points
- More than £7bn was owed in utility bills and charges by March last year, according to the NAO.
- Only a third of eligible broadband customers and 39% of struggling water customers knew about social tariffs.
- Energy debt has risen 118% since 2021, after Russia's invasion of Ukraine.
- The NAO says repayment plans can help reduce debt, and vulnerable customers are still not being identified well enough.
- Regulators say helping vulnerable customers is a priority, but they face pressure to do more.
If regulators and suppliers make support easier to find, more people could move onto repayment plans or cheaper tariffs before debts get worse. The report also suggests that when customers do get onto repayment plans, they owe less on average than those without help.
If awareness stays low, more households may keep falling behind and debts could keep rising. The NAO warns that billing problems and poor promotion of support may continue to push vulnerable customers deeper into arrears.
