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Households struggling with bills as £7.2bn debt crisis sparks warning | Personal Finance | Finance

Households struggling to pay their energy, water and broadband bills are not getting enough help, MPs have warned, as debt owed to utility companies reached £7.2billion. A report from the House of Commons Public Accounts Committee found that customers owed a combined £7.2billion to energy and water companies in March 2025. The figure does not include broadband debt. MPs said regulators Ofgem, Ofwat and Ofcom must do more to support people who are finding it difficult to afford essential services.

The committee warned that customers can struggle to find out what help is available, with some having to explain their financial circumstances repeatedly to different providers. It also raised concerns about people getting stuck trying to contact companies that increasingly rely on AI chatbots.

Discounted bills are available through social tariffs, but the report found that only 6% of water customers in England and Wales were receiving them. Fewer than 9% of eligible broadband customers were signed up to a social tariff, despite many more people potentially qualifying for cheaper deals.

The committee wants regulators and the Government to work together to identify customers who need help before their debts become unmanageable.

It has recommended making discounted tariffs a default option for the most financially vulnerable customers and exploring a central register that would allow information to be shared across the three sectors.

MPs also want a simpler system so customers do not have to keep explaining their circumstances every time they contact a different supplier.

Sir Geoffrey Clifton-Brown, chairman of the Public Accounts Committee, said: “Bills are increasing. Energy debt is correspondingly rising.”

He criticised the lack of coordination between companies, regulators and the Government, warning that people should not be left to fall into debt because they cannot access support.

The report also called for clearer plans for a statutory water ombudsman to help customers with complaints, alongside a service offering free advice to telecoms consumers.

With energy and water bills expected to rise further, MPs warned that more households could face financial difficulties unless support becomes easier to access.



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