Water Bill Assistance Sought by Record Number of Households

Data reviewed by the BBC indicates that over 250,000 additional households in England and Wales requested assistance with water bills during the past year. However, the availability and extent of this support show significant regional disparities. In the previous year, water companies allocated nearly £259 million to “social tariffs,” which are reduced charges designed to aid low-income households. Nevertheless, each company applies distinct eligibility criteria and provides varying discount amounts. For the 2023-24 period, customers benefiting from Welsh Water’s social tariffs received an average bill reduction of £287, whereas Southern Water customers saw an average discount of £110. The Consumer Council for Water (CCW) advocates for a unified scheme among companies to ensure equitable assistance for all individuals, regardless of their geographical location. CCW data reveals that the count of households utilizing social tariffs has increased by one-fifth since the previous year, reaching an unprecedented 1.6 million. Expenditure on these tariffs also saw a quarter-increase. The CCW attributed this rise to enhanced promotion of support schemes by companies, improved data exchange between governmental bodies and local authorities to identify vulnerable customers, and the broader impact of the cost of living crisis compelling more households to seek aid. Despite this, concerns persist regarding the inconsistency of support nationwide, suggesting that individuals might be deprived of assistance solely due to their residential location. The specific criteria for each company’s social tariff program vary, taking into account factors such as household income, welfare benefits, personal water bills, and savings balances. Morgan Davies and Ellie Bryan, a couple from Liverpool, encountered financial difficulties with their bills after incurring moving expenses due to a no-fault eviction. “We’re still paying off some of the bills from the old house. Our water bill was between £300 and £400 in debt from the other house, combined with this house, we just got behind on all the payments,” stated Ellie, 31. Morgan, 25, further commented: “We were over £4,000 in debt. We had to do so many payment plans and it was getting to the point where we had to get a payment plan for another payment plan.” The couple, both employed as supermarket shift leaders, received guidance from Money Wellness, and a communication from United Utilities, their water provider, directed them to a social tariff. Their monthly bill decreased from approximately £39 to around £25. Ellie advised: “I’d say don’t be embarrassed about admitting you’re behind on some payments. You just need to ask for help.” She continued: “If you’re struggling with debts, call the company because nine out of 10 times they have a solution for you. There is help out there if you look.” However, the eligibility for and magnitude of this assistance fluctuate based on the specific water company serving an individual. Unlike electricity and gas providers, customers lack the option to easily switch to a different water supplier. CCW data indicates that for the 2023-24 period, among the ten largest water and sewerage companies, average bill reductions varied from £287 for those served by Welsh Water (Dŵr Cymru) to £110 for Southern Water clients. The CCW’s figures are not computed as a percentage of individual bills, which show considerable variation due to regional differences and metered usage rates. Furthermore, the data does not distinguish between support provided to customers receiving water and sewerage services from separate companies. The average bill across England and Wales stood at approximately £445 in 2023-24, projected to increase to £473 for 2024-25. Southern Water informed the BBC that it maintains some of the nation’s lowest bills and acknowledged the difficulties households face with the cost of living. “This is why we’ve kept our minimum discount for those in need at 45%, rising to 90% if necessary.” The company stated: “We’re planning to more than quadruple the value of our Hardship Fund to £1.25m per year and we’re extending our Priority Services Register from 12% to 20% of our customers.” Andy White, a senior leader at the CCW, commented positively on the unprecedented number of individuals receiving assistance via social tariffs. He added: “However, it also shines a light on the fact that there are significant differences in the support that is available to customers depending who serves them as a water company,” characterizing the situation as a “postcode lottery”. White further explained: “Whether you actually get the help and qualify for that, and how much help that is, depends entirely on the scheme that each company is offering.” He concluded: “And we don’t think it’s right that people should have different support depending on where they live.” The CCW advocates for a unified social tariff across companies for those unable to afford water services, proposing a collective fund contribution to prevent the financial burden from disproportionately affecting less affluent regions. Water UK, the representative body for water companies, stated: “Ultimately it is up to Government to set the guidance on social tariffs, but water companies offer significantly higher reductions than other utilities such as energy.” The government affirmed its dedication to assisting vulnerable consumers with their bills and tackling water poverty, announcing “an Independent Water Commission which will report back next year with recommendations to protect customers”. Each company employs its distinct criteria to determine eligibility for a social tariff. Thames Water’s website indicates that its WaterHelp program is available to individuals whose bills exceed 5% of their net income, providing a 50% discount to eligible applicants. In contrast, Yorkshire Water suggests eligibility for its WaterSupport scheme if a household’s income is below £19,000 and their annual water bill surpasses £364. Companies might also inquire about savings. Southern Water specifies that eligibility for its Essentials tariff requires individuals to possess less than £16,000 in savings, coupled with a household income below £22,020, or for all household members to be recipients of pension credits. Welsh Water, a not-for-profit entity, extends support to households where at least one member receives a means-tested benefit, with varying income thresholds based on the number of residents. Social tariffs represent just one type of available assistance. CCW data further revealed that an additional £66 million was allocated to over 200,000 accounts through a distinct program named Watersure, which limits bills for metered customers who receive specific benefits and have high water consumption.