Water companies are asking vulnerable customers for their 'equivalised income' when assessing eligibility for social tariffs, a term that even Martin Lewis, founder of MoneySavingExpert, admits he does not understand. Speaking to the Public Accounts Committee, Lewis said the jargon is a barrier to vulnerable people receiving the help they need.
Lewis told MPs: 'The point I'm making is if none of us in this room knows what that means – and I don't know what that means – then I think it's probably not a good way to communicate it to vulnerable people.'
Regulator Should Crack Down on 'Crapness'
When asked if firms deliberately used confusing language to avoid offering help, Lewis said: 'I tend to think it's because they're crap at communicating. I tend to think this isn't conspiracy, it's just crap.' He added: 'I think that what the regulator could do is crack down on crapness.'
Lewis called for a communications audit of how water companies promote social tariffs, and suggested all firms should offer the same social tariff with centralised communication.
Millions Missing Out on Social Tariffs
According to Policy in Practice, 3.8 million households are missing out on water social tariffs. Lewis described this as 'outrageous'. In broadband, 7.5 million households are missing out on social tariffs. On energy, Lewis said the biggest problem is the lack of a social tariff, calling the current price cap a 'pants cap'. He argued that the current system leaves vulnerable customers, such as a 90-year-old with dementia, paying more than he does for energy.
Lewis said: 'We have a halfway house between a market system and price regulation and we have the worst of both worlds.'
Citizens Advice Calls for Standardisation
Anne Pardoe, head of policy at Citizens Advice, said awareness of social tariffs is 'really low' and lack of standardisation makes it difficult for people to claim what they are entitled to. She noted that in water there is a critical opportunity to standardise, but the government decided not to proceed with a single social tariff, calling it a 'really big missed opportunity'.
In broadband, Pardoe said the scheme is voluntary with no incentive for companies to promote it, leading to very little promotion among customers.
AI Chatbots Create Barriers
Pardoe also raised concerns about the increasing use of AI in chatbots, which can trap customers in endless cycles when trying to contact essential service providers. She said even Citizens Advice advisors find it difficult to contact energy, water, and telecoms companies, and called on regulators to monitor this carefully.
