Millions of households could be missing out on life-changing support for essential bills despite soaring debt, a new report has warned. The public spending watchdog said many people are unaware of support schemes that could cut the cost of energy, water and broadband.
The National Audit Office (NAO) found that total household debt to utility firms has climbed to more than £7bn, with awareness of financial support remaining low. Only around a third of eligible broadband customers and 39% of water customers struggling with bills knew about discounted social tariffs, meaning many vulnerable or low-income households may not be getting the help available.
The report examined how regulators Ofcom (broadband), Ofwat (water), and Ofgem (energy) support consumers in vulnerable circumstances and whether they can easily access assistance. It found that while protections have improved in recent years, support is not always reaching those who need it most, and regulators are not consistently measuring success based on real customer outcomes.
Energy Debt Surges Since 2021
Household debt has surged in recent years, particularly for energy bills. The NAO said energy debt has risen sharply since Russia's invasion of Ukraine, increasing by 118% since 2021. While more customers are now being added to priority services registers - which offer extra help for vulnerable households - awareness of broader financial support remains limited. Ofcom, the report noted, does not routinely track how many broadband customers know about or use support schemes.
The findings suggest many households are missing out on simple ways to reduce bills or manage debt more effectively. Social tariffs, repayment plans and other schemes are designed to ease pressure on struggling households. The NAO found that energy customers on repayment plans typically owed around £1,000 less than those without one.
Barriers to Accessing Support
However, barriers remain. Customers often struggle to contact providers, face confusing billing systems, or are unaware that help is available in the first place. The watchdog said regulators need to do more to promote support options and make systems easier to navigate.
Gareth Davies, head of the NAO, said regulators must act faster to keep up with rising financial pressure. He 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 ensure people know what support is available and can contact providers when they need to."
Sir Geoffrey Clifton-Brown, chairman of the Public Accounts Committee, echoed the concerns, warning that too many households are being left behind. He said: "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. Financial help is poorly promoted, and basic issues like billing errors are pushing people further into debt."
A spokesperson for Ofwat said protecting vulnerable customers remains a priority, adding that more work is needed to improve outcomes, particularly during periods of reform in the water sector. Ofgem said it is working with the Government on a targeted debt relief scheme and is pushing suppliers to improve billing accuracy and offer fair repayment plans.
The NAO has urged regulators to improve data-sharing, boost awareness campaigns and tackle the root causes of rising debt - warning that without stronger action, millions could continue to struggle unnecessarily with everyday bills.
