UK Utility Debt Exceeds £7bn Since 2021 but Repayment Plans Cut Balances by £1,000 on Average, NAO Finds

More than £7 billion in unpaid bills and charges was owed to water, broadband and energy companies by March 2025, and the total has grown since, the National Audit Office reported. The NAO examined the work of Ofgem, Ofcom and Ofwat. It found household energy debt rose 118 percent since 2021 after Russia's invasion of Ukraine.

Most customers did not know repayment plans and cheaper social tariffs were available, the report said. Only a third of eligible broadband customers and 39 percent of water customers who were struggling knew about social tariffs. Energy customers on repayment plans owed £1,000 less on average than those without such plans, the NAO said.

"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. Linda, 70, told the BBC she relied on a state pension that did not cover her utility bills. She said she had never been in debt before but now owed hundreds of pounds and felt embarrassed.

"I could afford my bills before, but I'm really struggling now," Linda said. A pensioner interviewed by the BBC said her energy meter credit often ran out three or four days before her pension arrived, though her supplier helped after she reported the difficulty. The NAO said awareness of the Priority Services Register remained low.

The UK-wide project helps companies identify customers with extra communication, access or safety needs. Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee, said contact with companies remained difficult when problems arose and that basic billing errors pushed households further into debt.

The regulators said helping vulnerable customers was a priority, that reforms were taking effect, and that more work was needed.