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Only 39% of water customers struggling to pay their bills are aware of social tariffs available to them, according to new research published by the National Audit Office (NAO). The Watchdog warns this awareness gap leaves vulnerable households locked out of support despite owing more than £7 billion collectively to water, energy and broadband suppliers.

The NAO’s 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.

Their research found there has been a marked increase in household energy debt, following Russia’s invasion of Ukraine, with energy debt more than double what it was in 2021, rising by 118%.

Since the NAO’s last report on this topic in 2019, regulators have strengthened protections including tougher licensing conditions, enforcement fines and stronger customer protections, however systems remain misaligned with consumer needs. Consumers still struggle to contact their providers and are not always aware of support available to help manage their bills – such as social tariffs and repayment plans. The NAO found only 39% of water customers who are struggling to pay their bills are aware of social tariffs, meaning people on low incomes and in vulnerable circumstances could be missing out on support to help manage debt.

The NAO found regulators are not aligning their performance measurements with actual consumer experiences and outcomes. Energy customers on structured repayment plans owe approximately £1,000 less than those without such support, implying that better awareness campaigns would deliver material benefit.

Based on their findings, NAO recommends regulators increase awareness of available help, tackle drivers of rising debt including inaccurate billing and switching barriers, and improve identification of vulnerable consumers through better data-sharing.

Responding to the report, Mike Keil, Chief Executive of the Consumer Council for Water, said:

“Over the past year CCW has seen complaints from water customers about debt more than double in the face of rising water bills and wider cost-of-living pressures. Water companies have increased support for those struggling to pay but, as the NAO report highlights, help is not keeping pace with the needs of consumers.”

“A stronger safety net of financial support is needed to prevent more households falling into water debt. Our independent review of water affordability back in 2021 made clear that a universal single social tariff would ensure financial support flows to where it is needed most. The postcode lottery of financial assistance created by existing water company social tariffs is unfair and unsustainable.