

	Trade and other receivables include amounts which are due from our customers for services we have provided, accrued income which has not yet been billed, prepayments and other receivables that are expected to be settled within 12 months.

Trade and other receivables are initially recognised at fair value, except for trade receivables that do not

have a significant financing component which are measured at transaction price, and are subsequently

measured at amortised cost, less any appropriate allowances for estimated irrecoverable amounts.


	2026	2025
	£m	£m
Trade receivables	3,091	3,050
Accrued income	882	1,083
Provision for impairment of receivables and accrued income	(603)	(578)
Trade receivables and accrued income, net	3,370	3,555
Prepayments	336	340
Other receivables	161	197
	3,867	4,092

Trade receivables are non-interest-bearing and generally have a term of up to 60 days. Due to their short

maturities, the fair value of trade and other receivables approximates their carrying value. The maximum

exposure of trade and other receivables to credit risk is the carrying amount reported on the balance sheet.

A provision for credit losses is recognised at an amount equal to the expected credit losses that will arise

over the lifetime of the trade receivables and accrued income.


	2026	2025
	£m	£m
At 1 April	578	559
Exchange adjustments	(13)	(11)
Charge for the year, net of recoveries	243	200
Uncollectible amounts written off	(205)	(168)
Reclassification to held for sale (note 10)	—	(2)
At 31 March	603	578

The trade receivables balance, accrued income balance and provisions balance split by geography are


	As at 31 March 2026			As at 31 March 2025
	UK	US	Total	UK	US	Total
	£m	£m	£m	£m	£m	£m
Trade receivables	194	2,897	3,091	265	2,785	3,050
Accrued income	289	593	882	513	570	1,083
Provision for impairment of receivables and accrued income	(5)	(598)	(603)	(3)	(575)	(578)
	478	2,892	3,370	775	2,780	3,555

There are no retail customers in the UK businesses. A provision matrix is not used in the UK, as an

assessment of expected losses on individual debtors is performed and the provision is not material.

In the US, £2,824 million (2025: £2,813 million) of the gross trade receivables and accrued income

balance is attributable to retail customers. For non-retail US customer receivables, a provision matrix

is not used and expected losses are determined on individual debtors.

The provision for retail customer receivables in the US is calculated based on a series of provision

matrices which are prepared by regulated entity and by customer type. The expected loss rates in each

provision matrix are based on historical loss rates adjusted for current and forecast economic conditions

at the balance sheet date. The inclusion of forward-looking information in the provision matrix-setting process

under IFRS 9 results in loss rates that reflect expected future economic conditions and the recognition of

an expected loss on all debtors even where no loss event has occurred.

In calculating our provision for impairment of receivables at 31 March 2026, we incorporate actual

cash collection levels experienced over a three-year period (placing greater weight on the most recent

study, gradually decreasing for older periods) to determine the expected loss rates per category

of outstanding receivable by operating company. These are benchmarked against provision matrices

run on pre‑COVID-19 behaviour and data. Factored into our analysis are expected cash collections

based on the collection activities in New England and New York, as well as the outlook for the wider

macroeconomic environment. The resulting rates are summarised in the provision matrix shown below.

Based on our review, we recognised a charge of £243 million (2025: £200 million), which represents

our best estimate based on the information available. We based our review on certain macroeconomic

factors, including unemployment levels, inflation, average commodity rate changes and our experience

The average expected loss rates and gross balances for the retail customer receivables in our US operations

US retail customer receivables are not collateralised. Trade receivables are written off when regulatory

requirements are met. Write-off policies vary between jurisdictions as they are aligned with the local

regulatory requirements, which differ between regulators. There were no significant amounts written off

during the period that were still subject to enforcement action. Our internal definition of default is aligned

with that of the individual regulators in each jurisdiction.