Customers in similar circumstances can receive different levels of support from their service provider. Each regulator has its own definition of vulnerability, including financial vulnerability. In water, Ofwat requires all water companies to offer social tariffs to low-income households, whereas in broadband offering social tariffs is voluntary for most companies. Water and broadband companies have discretion over the eligibility criteria that they set. These criteria are highly inconsistent in water, with some companies basing eligibility for social tariffs on receipt of benefits, while others link eligibility to a customer’s income or to water usage. As a result, consumers in similar circumstances can experience very different outcomes depending on who their supplier is. While the average water social tariff discount amounted to 55% of average household water bills in 2024–25, there is considerable variation around that average. The extent to which water customers on social tariffs saw their bills cut ranged from £27 to £314 per household, depending on their water company. In broadband, the voluntary nature of companies’ social tariff provision also leads to variation in definitions of eligibility criteria, and therefore in financial support to low-income households. recommendation a. Within 6 months, Ofcom, Ofgem and Ofwat should report back to us on how they plan to make definitions of vulnerability that inform companies support to consumers more consistent. b. Ofwat and Ofcom should work with their sponsor departments to consult on changes that would align social tariff eligibility criteria within their sectors. Drawing on the responses they receive, they should issue guidance to companies to align eligibility criteria within their sectors, and in line with their own definition of financial vulnerability. c. BIST should work with regulators to assess the feasibility of using the PSR to identify those who may be eligible for social tariffs, with the aim that providers use this information to proactively inform and provide support to eligible customers. 5