People with severe mental illness twice as likely to be disconnected by utility companies

People with severe mental illness are nearly twice as likely to report that they have had their phone, gas or electricity cut off by debt collectors.

That is the finding of new research by the Money and Mental Health Policy Institute – founded by Martin Lewis – which has condemned the “unnecessary harms” caused by aggressive utility company debt collection.

Some seven million people across the UK are behind on their utilities bills. More than half (52%) are experiencing some kind of mental health problem, the charity’s survey of 22,000 billpayers shows.

In particular, people with severe mental illness such as bipolar disorder or schizophrenia are four times more likely to be behind on some form of utility bill than people without mental health problems (35% compared to 8%).

• ‘I have nothing they can take’: Council tax debt collection having devastating impact on vulnerable people
• How can you cope with money worries in the cost of living crisis? We asked experts at leading mental health charities
• Martin Lewis blasts councils putting vulnerable people at risk with aggressive debt collection

Yet utilities companies are failing to support people in this position. Nationally, people with severe mental illness who are behind on bills are nearly twice as likely to report that they have had their phone, gas or electricity cut off, compared to people in arrears who don’t have mental health problems (23% vs 13%). 

Such disconnection can have devastating consequences, warned Helen Undy, chief executive of the Money and Mental Health Policy Institute. 

“Having access to services such as telecoms and energy is not a ‘nice to have’ – it’s an essential part of being able to live well and engage in society. That’s particularly true for people with severe mental health problems, who are more likely to be isolated, and for whom these services can be an absolute lifeline,” she said.

“Being disconnected from telecoms can mean losing access to your benefits account, to telephone crisis services and to friends and family who help many people with severe mental health problems to stay safe.”

Common symptoms of poor mental health such as memory problems or reduced concentration can make it harder for people to stay on top of bills and to get support if they fall behind, Undy added.

While disconnection for non-payment is not permitted in the water sector and is extremely rare in the energy sector, Ofcom data indicates it affects tens of thousands of people each month in the telecoms sector. 

“Not having access to a working phone had a monumental impact on my mental health,” one research participant told the Money and Mental Health Policy Institute. “Being able to contact friends/family or other services that prevent me from harming myself is necessary but providers say they have no control on restrictions; it’s all automatic.”

The charity has urged regulators to step in and crack down on these aggressive practices. 

It called on Ofcom to introduce a pre-disconnection protocol, setting out a mandatory number of communications firms should make before disconnection happens, and compelling firms to proactively offer forbearance measures to help customers who are struggling. The use of intimidating language and unwarranted threats of disconnection ought to be banned, the charity added.

“It’s really troubling that so many people with serious mental health problems report either being disconnected, or threatened with disconnection,” Undy said. “As this research shows, this is symptomatic of a broader failure by all utilities sectors to engage with and support customers who are in arrears and who might need extra support – and some of the most vulnerable people in society are paying a terrible price for it.”

“We need utilities regulators and firms to step up and to prevent more people from facing unnecessary psychological and financial harms when they’re already struggling.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. Big Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.

Big Issue is demanding an end to extreme poverty. Will you ask your MP to join us?