Vulnerable customers unaware of ‘excellent’ support schemes

Customers struggling to pay their bills lack awareness of support water companies offer, according to research commissioned by Ofwat. Once shown details of existing payment assistance schemes, most thought they were "an excellent idea", the report shows.

Companies should improve their understanding of the reasons a debtor has got behind with debts, researchers Accent recommended. The report said firms should promote schemes that offer incentives to get back into a payment routine within two months of a customer falling into debt. Penalties should be reserved for situations where it is clear the customer is able to pay, it suggested.

The recommendations came out of exploratory discussions with ten groups comprising different categories of customers who were in debt or struggling to pay. Ofwat said the findings would inform its debt, charging and affordability policies.