Citizens Advice published "Securing Life's Essentials" on 18 September 2024, a report examining targeted bill support, also called social tariffs, across four essential markets: energy, water, broadband and motor insurance. It is the first output of a joint project with the Institute for Public Policy Research and Policy in Practice, funded by abrdn Financial Fairness Trust1.
The report states that support schemes have developed independently of one another, with no strategic thinking about how they fit together, and that this has produced a landscape consumers struggle to navigate. It estimates that £1.9 billion of support goes unclaimed in water and broadband alone1. Its findings by market are:
| Market | Finding |
|---|---|
| Energy | Support needs to be more generous and better targeted |
| Water | Social tariffs set by individual companies vary significantly on eligibility and value, creating a postcode lottery |
| Broadband | Only 5% of eligible households are signed up |
| Motor insurance | No form of bill support scheme exists |
The report notes that the Warm Home Discount in England and Wales is automated, and that this good practice has not been applied to other sectors. It also records that the Government recently restricted the scheme to those in receipt of Pension Credit and some other means tested benefits1.
On costs, the report cites Ofwat's draft determinations for PR24, which would allow average water bills to rise by £94 per year over the next five years, a 21% increase, with Welsh Water proposed to rise by £137 and Southern Water by £183. It says the energy price cap will rise by 10% this winter, and that broadband customers may have seen cumulative increases of 38% across above-inflation rises in 2022, 2023 and 2024. On broadband contract terms it states:
"Despite Ofcom introducing a ban on price rise terms explicitly pegged to inflation, providers are still free to hike bills mid-contract"
The report's recommendations for immediate government action include expanding the Warm Home Discount and moving from a flat discount to a tiered one, requiring water and broadband providers to contact customers proactively with data sharing from DWP, and using existing powers held by Defra and DSIT to standardise eligibility. On the report's purpose it says:
"This report sets out these challenges - and how we can navigate our way to a solution."
Why it matters for households
The report frames bill support as a buffer for households on the lowest incomes against both predictable price rises and sudden shocks. Its modelling, by IPPR, estimates that households in the poorest decile spend 21% of disposable income on energy, water, broadband and car insurance, against around 10% for the fifth decile and around 5% for the tenth. It estimates 2.8 million households spend a fifth or more of disposable income on these utilities, up by around 1 million since 2021/221.
For a household, the practical effect of the findings is that eligibility and value of support depend heavily on which service and which supplier or company is involved. Water social tariffs are set company by company, so two similar households in different areas may receive different help. Broadband support exists but is taken up by a small minority of those eligible. Motor insurance has no equivalent scheme at all. The report also notes that 12% of pre-payment meter customers have been temporarily disconnected in the past year, and that nearly 8 million people have fallen behind on one of these four bills in the past 12 months1.
Energy independence at household level depends on being able to keep supply connected and manage costs; the report's evidence is that current support does not reliably reach the households that need it, and that unclaimed support leaves money unspent. The Energy Consumer Bodies page covers the organisations that handle complaints and advice, and Energy Complaints and Redress sets out the routes available when something goes wrong with a supplier.
What happens next
The report is described as the start of a collaborative project, with further work to cover how bill support schemes can be designed and implemented across the four markets. It sets out guiding principles of adequacy, targeting, standardisation, optimised uptake, simplicity and positive incentives for business, but does not give a timetable for the project's later stages1. The recommendations to government, including the use of Defra powers under the Flood and Water Management Act 2010 and a direction to Ofcom under the Communications Act 2003, have not been reported as accepted or scheduled.