People with severe mental illness are nearly twice as likely to be disconnected from essential utilities when behind on payments, according to new research from the Money and Mental Health Policy Institute.
The charity, founded by Money Saving Expert Martin Lewis, is calling on regulators to step in and end harmful debt collection practices across the energy, telecoms and water sectors.
The study highlights how utilities debt collection is failing millions—especially those with conditions like bipolar disorder and schizophrenia.
These customers are four times more likely to be behind on bills and are often left struggling with aggressive collection tactics, confusing communication and, in some cases, total disconnection.
The research, based on a survey of 22,000 people by the Money and Pensions Service, paints a stark picture:
- More than half of people in utilities arrears have a mental health problem.
- 35% of people with severe mental illness are behind on bills, compared to just 8% of those without.
- 23% of people with severe mental illness who fall behind on payments report being disconnected—nearly twice the rate of others in arrears.
Disconnection can have devastating consequences, leaving people unable to access online banking, benefits or even vital mental health support.
One participant in the study described how losing their phone service left them completely isolated: “Not having access to a working phone had a monumental impact on my mental health. Being able to contact friends/family or other services that prevent me from harming myself is necessary.”
Threats of disconnection, even if not carried out, are also taking a toll.
Energy providers rarely cut people off, but their warnings can still cause severe distress. Meanwhile, “self-disconnection”—where prepayment meter customers can’t afford to top up—remains a serious issue.
The charity is urging Ofcom to act, demanding a pre-disconnection protocol to ensure telecoms companies exhaust every alternative before cutting off customers.
It also wants all regulators to crack down on intimidating debt collection letters and force companies to provide clearer guidance on support options.
With millions struggling, especially as prices rise again, the charity is clear – regulators and firms must act now to stop harmful practices and protect the most vulnerable.
