Millions of people could be missing out on vital financial help simply because they don’t realise they qualify as a 'vulnerable customer' - a term experts say applies far more widely than many assume. The issue was highlighted during a recent BBC segment featuring consumer expert Laura Pomfret, where viewers were urged to check whether they are entitled to extra support from banks, lenders and utility providers.
What Defines a Vulnerable Customer?
Under guidance from the Financial Conduct Authority, a vulnerable customer is anyone who may be at greater risk of harm when dealing with financial services due to their personal circumstances. Crucially, this is not a fixed status - people can move in and out of vulnerability depending on life events, meaning many may qualify temporarily without realising it. The definition is intentionally broad, reflecting the pressures of modern life. Regulators highlight four main factors that can contribute to vulnerability: health, life events, financial resilience and capability. This means those living with physical or mental health conditions, disabilities or cognitive challenges may be eligible for additional support.
However, it also extends to people experiencing major life changes such as bereavement, redundancy or relationship breakdowns, as well as those facing a sudden loss of income. Even difficulties managing money or navigating digital services can be enough to qualify.
Rising Living Costs Drive Need for Support
Experts say the issue is particularly relevant as rising living costs continue to place a strain on household finances. A short-term setback - such as reduced income or an unexpected expense - can quickly leave people needing extra support. The key message from campaigners is that vulnerability is not about weakness or long-term hardship. Instead, it is about recognising when someone may need additional help to access services safely and fairly.
What Support Is Available?
Being recognised as a vulnerable customer can unlock a wide range of support across banking, credit and household bills. Providers are expected to adapt their services, which may include more flexible communication, extra time to make decisions and tailored repayment options.
Banks and Lenders
For those struggling with debt, lenders may agree to reduced payment plans or refer customers to free advice services, helping ease short-term financial pressure. The key is contacting the lender early, before the situation escalates. Other benefits include: longer or more flexible appointments; clearer explanations and simplified communication; alternative formats like large print or braille; extra security checks to prevent fraud; payment holidays or temporary pauses on loan repayments; and freezing interest or charges in some cases.
Energy, Water and Utilities
Energy, water and telecoms providers also offer additional support through schemes such as the Priority Services Register (PSR), a free service designed to help customers who may need extra assistance during disruption or outages. It is easy to register and can provide priority support during power, gas or water interruptions, including emergency help for those who rely on medical equipment, as well as referrals to services such as the British Red Cross where needed. Eligibility is broad and can include older people, those with physical or mental health conditions, households with young children, or anyone who may need extra help with communication or accessing services. Support available can include: advance warning of power cuts; priority help during outages; protection from disconnection in emergencies; meter readings and bills tailored to your needs; bills and financial hardship; access to discounted social tariffs; water bill caps for eligible households; emergency grants via local council schemes; and help with debt repayment plans.
Health and Accessibility
Many organisations also offer tailored adjustments for customers with health conditions, including: allowing a trusted person to help manage accounts; dedicated support teams trained in mental health awareness; and communication preferences (e.g. avoiding phone calls).
The Hidden Barrier
Despite the support available, experts warn that many people miss out because they do not come forward. Concerns around stigma, privacy or simply not recognising their situation as 'vulnerability' can prevent people from seeking help. However, firms are required to treat such information sensitively and confidentially and sharing it can make a significant difference to the support offered. As highlighted in the BBC discussion, informing providers about your circumstances is not about being judged - it is about ensuring services can be adjusted to better meet individual needs.
How to Access Support
Registering as a vulnerable customer is usually straightforward and can be done by contacting your bank, lender or utility provider directly, either online, over the phone or in person. You can: contact your bank, lender or provider via phone, app or branch; ask about being recorded as a 'vulnerable customer'; join the Priority Services Register through your energy or water supplier. With millions of people potentially eligible, experts say it is worth checking whether you or a family member could benefit. At a time when many households are feeling the strain, understanding and accessing the right support could provide much-needed financial relief and peace of mind.
