Customers struggling to pay bills are more likely to use a credit card than ask for help and many are unaware of the financial support available from utility companies, research by Ofwat has shown.
The study suggests that despite help being available from water companies, only a small number of households know.
Ofwat found billpayers were three times more likely to use a credit card than seek assistance for their utility bills including water.
Water companies have grown their social tariff options and financial support for consumers, but only 3 per cent of billpayers reported being in receipt of such help in the past year.
Ofwat commissioned both qualitative and quantitative research of households in England and Wales that showed one third of customers are struggling to pay household bills, and 40 per cent are concerned about money.
It found many of the people with financial concerns are newly vulnerable and accessing support for the first time and some were unaware of the help available. Only 15 per cent of people knew water companies provided financial support throughout the pandemic. When informed, people were surprised and pleased.
The research was commissioned as part of Ofwat’s #ListenCareShare work to understand water customers’ experiences over the past year. The regulator said the work indicates a greater need for companies to proactively communicate with billpayers about the available help.
David Black, interim Ofwat chief executive said: “Behind the statistics lies the challenging reality being faced by so many customers today. The stories we have heard through #ListenCareShare have reminded us that the financial impact of this pandemic continues to bite and we are beginning to gain a clearer picture on what this means and how this feels for customers.
“Customers are making difficult decisions, with some turning to credit cards to cover their bills. Water companies need to be active in seeking out and providing help to those who need it the most, especially during these unprecedented times.”
The study follows an independent review by CCW into affordability that called for an end to the current ‘postcode lottery’ of support by introducing a single social tariff.
Eradicating water poverty is one of the public interest commitments made by the sector as it strives to set out a clear social purpose.
Ofwat’s #ListenCareShare work also addresses mental wellbeing and information inequality as the regulator works to better understand what customers have experienced during Covid-19 and how households are affected.