Majority of consumers are not aware of own vulnerability status

The majority of UK consumers eligible for support are not aware of their own vulnerability status.

While 67% of the population meets the official vulnerability threshold when assessed against Financial Conduct Authority (FCA) criteria, just 17% of British adults self-identifies as being a “vulnerable consumer”, research by customer service provider NICE reveals.

The NICE survey of 2,000 people concludes that this “gap in awareness could have dangerous consequences for both consumer and business as vulnerable customers are left without adequate support when they need it most”.

The survey also found that 39% of respondents mistakenly believe that vulnerability is solely dependent on age and only applies to those aged 65 and over.

However, 38% of respondents in all other age groups said they would struggle to meet an increased rent or mortgage payment of just £50 per month, putting them in an extremely vulnerable position financially.

In contrast, just 14% of over 65s felt heavily burdened by bills and credit payments.

Richard Bassett, VP of digital and analytics at NICE, said, “Offering personalised, empathetic customer service in today’s digital world can be challenging.

“This becomes even more complex when needing to support vulnerable customers. As our report highlights, the signs of vulnerability are not always easy to detect, especially when consumers aren’t aware of their own vulnerability or willing to talk about it.

“Yet many businesses still rely on agents to not only accurately identify vulnerability during every conversation, but also respond to their varying needs.

“With regulators tightening rules around the fair treatment of vulnerable customers, businesses risk large fines if they don’t get this right.

“Promisingly, AI delivers a solution. Harnessing the power of your customer service data, AI can help to accurately detect signs of vulnerability during every interaction – be that stress, financial woes, or even a breakup – and offer real-time guidance for agents to ensure they can provide an exceptional experience every time.”

Published earlier this month, the government’s Annual Fuel Poverty Statistics show that an estimated 3.17 million people were living in fuel poverty in England in 2023. That equates to 13% of all households in the country.

Sharing data between utilities via a shared Priority Services Register has long been touted as a means of reaching more vulnerable consumers with the support they need.

Earlier this week, Utility Week revealed that all four of the UK’s gas distribution networks have joined the shared PSR following a change in the way they handle vulnerable customer data.

Cadent, Northern Gas Networks, SGN and Wales & West Utilities are all now sharing PSR data with energy retailers and water companies after moving to using the substantial public interest (SPI) clause to share customer data, rather than explicitly asking customers for consent.

It is a major milestone for the utilities sector which has for years talked about the need for better data sharing regarding vulnerable customers, but has been constrained by issues such as consent for the information to be shared.