A new report by the Consumer Council for Water (CCW) has unveiled proposals to end the postcode lottery of support for millions of households across England and Wales who are unable to afford their water bill and to improve access to wider help.

About 1.5 million customers currently living in water poverty would have their bills made affordable under the proposals set out today in a new report by CCW of its independent review into the affordability of water on behalf of the UK and Welsh governments.

The report includes a number of proposed measures that would improve the lives of millions more households - through making it easier for them to access help from their water company on everything from making payments and clearing debt to reducing their water consumption.

The review found that 5 out of 6 customers who cannot afford their water bill were not receiving the help they need, despite a significant rise in water company support schemes over the past decade.

This is because some of the schemes remained hampered by insufficient funding and large regional variations in eligibility criteria – creating a ‘postcode lottery’ of help.

One of the key recommendations to overcome this would be the creation of a single social tariff for England and Wales that would ensure no-one ever has to spend more than 5 per cent of their income – after housing costs – on water bills. This would end the patchwork of support provided by different water company schemes, CCW says.

Emma Clancy, Chief Executive of the Consumer Council for Water, commented:

“We have a golden opportunity to create a simpler and fairer system and end the indignity of people skipping meals or other essentials to pay their water bill.”

“Many people are craving certainty in these difficult times and these proposed changes would give millions of households one less thing to worry about and greater peace of mind – whatever the future holds.”

Rebecca Pow MP, Environment Minister for the UK Government, said:

“The review sets out practical recommendations to deliver on our levelling up agenda, exploring new ways of doing things that could help the most vulnerable customers. I look forward to considering these further and working with the sector to build a stronger, better and fairer water service for those who need it most.”

A single social tariff would ensure people received consistent and fair support based on their income and need – not where they live. Those that were eligible would benefit from an average bill reduction of £190. The scheme could be funded through public expenditure or a customer cross-subsidy.

The report also recommends water companies take steps to develop a better understanding of their customers’ needs and raise awareness of the support they can offer.

The industry would be expected to continue to help fund a wider range of measures designed to prevent at least 3 million more households on the cusp of crisis slipping into water poverty. These would include giving water customers greater choice and control over how they pay their water bill using the latest technologies and providing more tailored financial help.

Companies would also be asked to write-off water charges while social tariff applicants are waiting for their first payment of Universal Credit and to offer long-term bill incentives for low-income households with relatively low water use to switch to a water meter.

Water companies welcome CCW Affordability Review

Many of the recommendations in the report could be rolled out immediately with the support of water companies and a number of pilot schemes are already in the pipeline.

Water UK, the organisation which represents all major statutory water and wastewater service providers in England, Scotland, Wales and Northern Ireland, has welcomed the review.

Water UK’s Chief Executive Officer Christine McGourty said:

“We welcome the publication of CCW’s Affordability Review, which could not come at a more important time. Water companies believe bills should be affordable for all customers, whatever their circumstances and wherever they live, and that a new approach to supporting people who are struggling financially is needed.

“Levels of support for customers have never been greater. Over the past year water companies have gone to unprecedented lengths to help hundreds of thousands of household customers who could least afford their bills, with support such as payment breaks and extra assistance for those most in need – but we know there’s more to be done.

“The Review’s bold and far-reaching recommendations on social tariffs will enable real progress to be made towards the shared goal of ending water poverty. We look forward to continuing to work with CCW, Defra, the Welsh Government and other stakeholders to take forward the proposed new approach to social tariffs, as well as considering the many other recommendations in the report.”

More than 1 million households currently getting help to pay their bills. That figure is set to rise to 1.5 million over the next few years

During the Covid-19 pandemic water companies have proactively provided more than 100,000 payment breaks to customers

Click here to read the full report.