The regulators of essential services such as water, energy and financial protection could “do more” to help an increasing number of vulnerable consumers, the spending watchdog has said.
Many conditions that lead to vulnerability among consumers are projected to increase, partly due to the ageing population, but industry-wide regulatory interventions are “often limited and inconsistent in reach and impact”, the National Audit Office (NAO) said.
The report said 1.6 million energy prepayment customers – often those on the lowest incomes – self-disconnected their supply at least once a year because they do not or cannot top up their meters, and around three million disabled people had been denied insurance or charged extra because of their condition.
The Money Advice Service found in 2015 that 32% of UK adults would be unable to pay an unexpected £300 bill without cutting back on essentials, and this rose to 50% or more for those who were unemployed, receiving benefits or living in social housing.
Although the water, energy and landline industries offer discounted prices for customers on low incomes, eligibility criteria varied among companies, awareness could be low and uptake inconsistent, the NAO said.
It found that while the regulators had improved their understanding of vulnerability in each sector, they had not quantified the impact of problems, or how the issues were changing over time.
It also concluded that progress made by regulators on working together more closely had been limited.
NAO head Amyas Morse said: “A significant number of vulnerable consumers are particularly susceptible to bad outcomes or experiences from regulated services such as energy, water, communications and financial services.
“It can mean disproportionately high bills, lack of access or choice, and debt.
“Regulators have improved their understanding of vulnerability, and have made some progress in working with their industries to improve support for vulnerable consumers.
“Regulators and government, however, need to work closer together to clarify their respective responsibilities if overall support for vulnerable consumers is to be value for money.”
James Taylor, head of policy and public affairs at disability charity Scope, said: “Too many disabled people are currently ill-served across a number of markets including energy and insurance, resulting in higher costs for essential goods and services.
“Today’s report highlights that much more action is needed to protect disabled consumers and tackle the unfair extra costs many face. Scope research shows this can amount to a staggering £550 a month.
“Whilst there has been some good progress, the Government and regulators across all markets need to do much more to support disabled people and increase awareness amongst businesses of how to better identify and serve disabled customers.”
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