Millions of households could be paying far more than they need to for essential bills, with watchdogs warning that huge numbers of people are missing out on discounts worth hundreds of pounds a year.
A new report from the National Audit Office (NAO) has revealed that many customers are unaware of support schemes for broadband, water and energy bills, even though they could qualify for lower prices because of their income, benefits or personal circumstances.
The findings suggest checking what help is available could be one of the easiest ways to reduce household costs this year.
The bill discounts many people never claim
The watchdog found that only around one in three eligible broadband customers know about social tariffs – discounted broadband packages designed for people on benefits or lower incomes.
Awareness is also low among water customers, with fewer than four in 10 people who qualify knowing help is available.
These schemes can offer significant savings, but millions are missing out simply because they don't know they exist.
How you could save on broadband
If you're claiming certain benefits, you may qualify for a broadband social tariff.
These discounted deals are often substantially cheaper than standard packages and are available from many major providers.
The NAO found that awareness remains surprisingly low despite the potential savings.
Water bill help many households overlook
Water companies also offer support schemes for customers struggling with bills.
Depending on your circumstances, you may qualify for:
- Reduced water bills
- Payment support schemes
- Hardship funds
- Debt assistance programmes
Yet the report suggests many eligible households never apply.
Energy customers could save by asking for help
The watchdog found energy debt has surged by 118% since 2021. However, customers who agreed repayment plans with suppliers owed around £1,000 less on average than those who did not.
This follows Energy Secretary Ed Miliband's promise to cut energy bills, but rising electricity and gas costs are making this more difficult.
Support can include:
- Affordable repayment plans
- Payment breaks
- Debt support schemes
- Priority customer services
Experts say contacting suppliers early can prevent debts growing out of control.
Check if you're missing out
You may want to see what support is available if you:
- Receive Universal Credit
- Receive Pension Credit
- Claim disability benefits
- Are on a low income
- Have long-term health conditions
- Are struggling with household bills
Many schemes are available directly through providers, but are not automatically applied.
Recommended reading:
- DWP responds to growing backlash over Motability scheme changes
- TV licences could be free again for all pensioners after thousands back new campaign
- The 1p ISA ‘loophole’ that could help savers sidestep new HMRC tax rules
Why millions are paying more than necessary
According to the report, one of the biggest problems is that people simply don't know what support exists.
The watchdog said regulators need to do more to promote discounts and make it easier for customers to access help.
Gareth Davies, head of the NAO, said it was "more important than ever" that people know what support is available as financial pressures continue to grow.
Have you saved on your household bills? Tell us in the comments below...
