The financial pressure of household bills doesn’t just show up in bank balances; it affects mental health, emotional wellbeing, and even daily decision-making. According to Ofwat’s December 2024 report, it shines a light on the human side of financial stress, particularly how struggling to pay water bills contributes to anxiety and depression.

The emotional toll of financial stress

Among those struggling with their water bill, 47% reported feeling worried, 47% reported feeling stressed, and 37% reported feeling depressed. This is significantly higher than the general customer base, where 30% feel worried, 29% feel stressed, and 17% feel depressed.

These emotional burdens have behavioural impacts:

• 33% of all bill payers say they avoid or delay opening bills when they are struggling with mental health.
• Among younger customers (18-34), this rises to 48%.
• 58% of all bill payers agree that mental health struggles make it harder to ask for help with bills.

Asking for help – the support gap

Despite the availability of support schemes, such as the WaterScheme, only 46% of customers say they know who to ask for help if their mental health is affecting their ability to manage bills. This gap highlights the need for water companies to adopt approaches that normalise asking for help and reduce stigma.

How an I&E tool can help

An I&E tool serves as a structured, compassionate entry point to discuss finances without judgement. Here’s how it helps:

• Humanising the Process: Rather than focusing solely on arrears or missed payments, the I&E approach starts by understanding the customer’s full situation.

• Reducing Shame and Fear: By providing a neutral framework, it can help reduce the emotional barriers to asking for help.

• Linking to Broader Support: An I&E tool can identify when a customer needs more than just financial restructuring — they may also benefit from mental health referrals, local support organisations, or national charities.

By using I&E tools as part of customer care, water companies can detect early signs of financial stress and connect customers with appropriate support before the emotional burden becomes overwhelming. This approach benefits both the customer and the company, reducing arrears and improving customer satisfaction. By implementing robust Income and Expenditure (I&E) tools, such as Paylink’s Embark platform, these assessment tools help customers determine their full financial picture.

Free debt advice solution in one customer journey through Embark

Paylink collaborate with our partner PayPlan and have been doing so since 2016. During the affordability assessment process, customers can access our partner company, PayPlan, for free debt advice. Following completion of their I&E using the Embark tool, the customer can choose to share this data with PayPlan, which is transferred via a secure API. Customers can choose either a call back from PayPlan or live chat with a debt advisor using WhatsApp. This collaboration provides a faster and more effective path towards debt resolution, accessing PayPlan’s free and simple debt advice in a single, streamlined journey.