The National Audit Office (NAO) published a report on 10 June 2026 finding that debt to water and energy companies has climbed above £7 billion, and that millions of people are missing out on support with essential bills including water, energy and broadband1. The report examined how Ofgem, Ofwat and Ofcom support consumers in vulnerable circumstances and whether households can access the help they need from essential service providers1.
The NAO found energy debt has more than doubled since 2021, rising by 118 per cent, a marked increase it links to Russia's invasion of Ukraine1. Awareness of social tariffs is low: only a third of eligible broadband customers and 39 per cent of water customers who are struggling to pay their bills know the tariffs exist1. The report also found that energy customers on repayment plans owe around £1,000 less than those without one in place1. Industry practices, including inaccurate billing, delays when people move home and barriers to switching tariffs, account for an estimated 35 per cent of customer energy debt1.
Ofwat and Ofgem have overseen an uptake in registration for company priority services registers, though consumer awareness remains low, and the register does not extend to broadband, which has separate requirements1. Ofcom does not routinely monitor take up or awareness of support1. The NAO concluded that regulators are not aligning their performance measurements with actual consumer experiences and outcomes1.
"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 make regulation work so that people know what support is available and can contact essential providers when they need to."
The NAO recommends that regulators improve access to support through accessible contact channels, increase awareness of social tariffs, repayment plans and other schemes, tackle industry drivers of rising debt, and strengthen support for consumers in vulnerable circumstances, including better use of data and data-sharing across sectors1. The £7 billion debt figure and the energy debt increase both date from March 20251.
| Measure | Figure |
|---|---|
| Debt to water and energy companies | More than £7 billion |
| Rise in energy debt since 2021 | 118% |
| Eligible broadband customers aware of social tariffs | One third |
| Water customers struggling to pay aware of social tariffs | 39% |
| Energy debt attributed to industry practices | 35% |
Why it matters for households
The gap the NAO identifies is between support that exists and households that know about it. Social tariffs, repayment plans and priority services registration are the routes through which a home in arrears can reduce what it owes and stabilise its bills, and the report indicates that a large share of eligible households are not using them1. The finding that repayment plans are associated with around £1,000 less owed suggests the difference between engaging with a supplier and not doing so is material to a household's position1.
For a home's energy independence, the practical effect is that debt and unclaimed support both reduce the room a household has to manage its own consumption and payments. The NAO's estimate that 35 per cent of energy debt stems from industry practices such as inaccurate billing and moving-home delays places part of the problem outside household control1. The energy debt and arrears statistics set out the wider picture, and the help with energy bills guide for England covers the support routes named in the report. Separate arrangements apply in Scotland and Northern Ireland, and the vulnerable and medically dependent households page covers priority services registration.
What happens next
The NAO has made four recommendations to Ofgem, Ofwat and Ofcom covering access to support, awareness of help, the industry drivers of rising debt, and support for consumers in vulnerable circumstances1. No timetable for regulators to respond or act has been reported.