More than half of households (53%) expect to struggle to pay a utility bill in the coming year, rising to seven-in-ten for those with children in the home, research by Ofwat has found.
The regulator commissioned Savanta to conduct a survey of more than 2,600 people in England and Wales in March and April, which found 61% of respondents expect their financial situation to worsen over the coming year, up from one-in-four in a similar survey in March last year.
Ofwat said financial concerns are having a profound impact on peoples’ wellbeing, with more than a third (34%) of those expecting to struggle to pay a bill reporting regularly feeling depressed and almost a half (47%) reporting feeling worried on a day-to-day basis. Only 31% of respondents said they were aware of financial support available from their water company.
Based on the research, Ofwat will publish new guidelines for the sector on supporting households to pay bills, access help and repay debt.
“We know that many people are facing a tough year and this report highlights the worrying impact that money difficulties can have on mental health and wellbeing. It’s vital that water companies and the wider sector are alert to this and provide support and information to customers who are struggling. We will continue to monitor how customers are coping and how water companies are responding,” said Claire Forbes, senior director of corporate communications at Ofwat.
Emma Clancy, chief executive of CCW, added: “The fact six out of ten households expect their finances to get worse in the coming year reinforces the urgent need for a new water affordability scheme that provides fair and consistent support for people who cannot afford their bills. There is a compelling case for ending the current postcode lottery of water bill support, which is why we’re working with Ofwat, government and water companies to bring about meaningful change.”
The regulator has previously said it would add a customer-focused licence condition and incentivise how customer service is delivered.
Ofwat noted that the research began before the latest hike in the energy price cap came into effect at the beginning of April, meaning the survey will not fully reflect the financial pressure billpayers are now under.