How residents can get support with water bills

Just before Christmas the water regulator, the Water Service Regulation Authority (Ofwat), will unwrap its final decisions on the new price limits, which will determine the level of household water and sewerage bills in England and Wales for the next five years.

There is widespread recognition that a further acceleration of investment is needed in the water sector in order to better meet public expectations on environmental and service standards. Ofwat is currently proposing to unlock £35bn of expenditure to reduce pollution, improve customer service, enhance river and bathing water quality and make water and sewerage services more resilient to climate change.

Research carried out by the Consumer Council for Water (CCW) showed the majority of customers accepted the proposed investment plans. But it also revealed many households are concerned about whether they will be able to afford the substantial bill rises this will bring.

Ofwat’s draft price determinations earlier this year indicated that household bills in England and Wales would need to rise by an average of 21%, before inflation, by 2030. And in some regions the increases could be more than double that amount.

Around one in five customers told us that they already found it difficult to afford their current water bill. When asked to consider whether they could afford the proposed future bill rises, this increased to two in five customers. We also know that those living in social housing are already facing some of the biggest cost-of-living challenges.

As the customer watchdog, CCW has worked with water companies to ensure that they continue to improve the support that they can offer to financially vulnerable households. These schemes can make a real difference to people facing hardship. However awareness of this help is low and many customers simply don’t expect to be able to get support from their water company.

The support offered by water companies includes:

• Social tariffs – these can instantly cut bills for eligible customers. Over 1.6 million households are currently benefitting from these schemes, which can slash bills by as much as 90% each year. But eligibility criteria and support varies from company to company. There is a guide on our website which explains what each company offers.
• WaterSure – The scheme limits metered bills to an average level for those in receipt of income related benefits who have high essential usage needs due to family size (three or more children) or a medical condition.
• Debt support schemes – some companies can offer to match payments against arrears where the customer maintains a regular payment pattern.
• Hardship funds – some companies can provide one-off grants to clear debts or help with the purchase of essential items such as white goods.
• Payment breaks – payments can be deferred for those experiencing short-term financial difficulties.

Further details are available from companies and on our website. We also have a grants search tool and benefits calculator, which can be used to check if all relevant benefits are being received. Our water meter calculator can identify if those without a meter would benefit from making the switch. In some cases this can save hundreds of pounds a year.

These schemes really can make all the difference. It is vital that we spread the word and better equip households to deal with the potential bill challenges which lie ahead. Your support in getting this message out to your tenants would be a huge help.