8
In water, government policy requires water companies to offer social tariffs to lower-income customers, whereas...
Conclusion
In water, government policy requires water companies to offer social tariffs to lower-income customers, whereas there is no social tariff policy in broadband; Citizens Advice and Martin Lewis told us that for broadband companies, provision is essentially voluntary.12 In both sectors, eligible consumers must apply to receive social tariff benefits, meaning there is a role for both companies and regulators to publicise the availability of social tariffs.13 Ofwat and Ofcom told us they have encouraged water and broadband companies to offer social tariffs to customers on lower incomes.14 In both water and broadband, it is for companies to decide on social tariff eligibility and levels, which as a result can vary widely for consumers in similar circumstances, merely because they are served by different companies.15 This is particularly an issue in water where consumers have no choice in who supplies them.16 CCW told us that the level of discretion given to companies in setting social tariffs also, in effect, contracts out social policy to private companies.17 There is no social tariff in energy, which we note as an outlier requiring further consideration by the Department for Energy Security and Net Zero and Ofgem. Instead, DESNZ sets the Warm Home Discount that provides eligible customers with a £150 discount on their annual energy bill. While energy retailers provide additional support voluntarily, Ofgem accepted this is not a systemised 7 C&AG’s Report, para 15 8 Q 11; C&AG’s Report, para 24 9 Q 11; C&AG’s Report, para 3.9 10 Q 10 11 Q 6; C&AG’s Report, para 15 12 Q 11; C&AG’s Report, para 3.5 13 Q 19 14 Q 11, 80, 83; C&AG’s Report, para 3.5 15 C&AG’s Report, para 3.9 and 3.10 16 C&AG’s Report, para 1.6 17 Qq 20-21 10 form of support and said it had long argued that there is a case for some targeted support for those households that are particularly struggling with their energy bills and have particularly high consumption.18
Source
Committee
Public Accounts Committee
Report
13th Report - Regulation of water, energy and broadband
11 Sep 2026
HC 105
Addressee Bodies
HM Treasury
Timeline
Report published
11 Sep 2026