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Vulnerability is a more pressing issue than ever before, which means the needs of your audiences are far more complex than they’ve ever been. Some firms have no choice, and some sectors face greater consequences than others, but all businesses should be making a conscious decision to act fairly in support of their vulnerable audiences. The risk of not doing so? Putting the clear moral obligation to one side, it’s reputational damage, neglected opportunities for growth, and weaker strategies.
Onus on energy firms to take action
There’s no way around the fact that energy firms have been failing vulnerable customers. During the winter of 2022, debt repayments rose to such heights that many customers simply couldn’t top-up their pre-paid meters. As the energy crisis continues into 2023, more customers will struggle to pay energy bills, with pre-paid customers on a higher rate being the hardest hit – not least because they are more likely to live in houses with poor insulation and EBSS scores, meaning they need to use more energy.
Following a deep dive into the ways energy suppliers are helping customers in November 2022, energy regulator Ofgem ranked their activity in three categories — severe, moderate or minor weakness — reporting how 17 named providers need to take more positive action towards identifying and supporting the vulnerable, such as providing free gas checks and providing information relevant to their needs.
The public pressure and reputational damage will continue unless energy firms take the right steps to inform new strategies. So where should they start?
It’s important that energy firms fully understand the complex situations and struggles of vulnerable customers in order to adapt their strategies to offer the appropriate forbearance, especially as not all customers face the same struggles. Those with mental health problems, for example, experience multiple vulnerabilities that collide and exacerbate challenges. A third of them have stated their income is not enough to meet everyday outgoings, while almost half say they need to borrow money or use credit just to pay their bills.
A shared responsibility
The impact of the cost of living crisis leaves all businesses with a responsibility to better serve their increasingly vulnerable customers. The government has intervened with a range of solutions. Starting October 2022, the Energy Bills Support Scheme saw consumers receiving £400 of financial support over the course of six months, with the most vulnerable households receiving £1,200 to support the cost of living. Given that the cost of living continues to rise, its impact is being felt across all sectors and areas of life. So how can businesses – and not just energy firms – reach, engage and support the vulnerable?
