Bill debt soars but many don't know help is available

An important development from the financial markets: Bill debt soars but many don't know help is available13 minutes ago Share Save Add as preferred on GoogleKevin PeacheyCost of living correspondentGetty ImagesBillions of pounds are owed to water, broadband, and energy companies by customers – the majority of whom are unaware that support is available. More than £7bn in bills and charges was owed by March last year, the UK's spending watchdog said, but estimates suggest that total has grown since. One pensioner told the the credit on her energy meter often ran out three or four days before she received her pension, but she said her energy supplier had been helpful after she let them know she was struggling.

Most people did not know repayment plans and cheaper social tariffs were available to those in debt, the National Audit Office (NAO) said. Only a third of eligible broadband customers and 39% of water customers who were struggling to pay their bills were aware of social tariffs, the NAO added. These are generally discounted packages on essential bills, such as water, energy and broadband, often available to people on benefits or who are struggling to pay.

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They can vary between suppliers. It said energy customers on repayment plans owed £1,000 less on average than those in debt who were without. "Regulators have made progress to support consumers, but they're not keeping up with the pressure now facing millions of households," said Gareth Davies, head of the NAO.

"With debt rising sharply, it's more important than ever to make regulation work so that people know what support is available and can contact essential providers when they need to. "How you can save money on your energy billMillions of families miss out on cheap broadbandIts report looked at the work of the three regulators in these sectors – Ofgem, Ofcom, and Ofwat. The watchdog said household energy debt had jumped following Russia's invasion of Ukraine, rising by 118% since 2021.

It said regulators could still improve how they identified vulnerable customers and promoted the support available. Linda, aged 70, said she was embarrassed enough about her debts – amounting to hundreds of pounds – to want to remain anonymous. "I could afford my bills before, but I'm really struggling now.

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I've never been in debt before," she told the . "I'm repaying in instalments, but the debt is not going down. "She relied on a state pension and said it never stretched far enough to cover her utility bills.

The NAO report said that awareness of the Priority Services Register remained low. The UK-wide project helps utility companies identify and support customers who have extra communication, access or safety needs – such as during a power cut. Wider communications also needed to improve, according to Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee.

Financial markets are tracking the development closely as investors assess the likely impact.