People who are facing increasing cost of living pressures can access a £30 million support fund being launched today by Severn Trent and seek up to a 90% reduction on their water bill.

As the cost of living continues to rise, the water company has pledged to support an extra 100,000 customers across the region who are struggling to pay their water bills. The funds are available to those on low incomes.

Severn Trent is the first water company in the UK to offer support on this scale. The move builds on the support that Severn Trent already provides to 215,000 customers, with an extensive range of schemes to help those in need. Those eligible could see a reduction in their bill of up to 90%.

Liv Garfield, Severn Trent CEO, said:

“As cost of living pressures continue to rise, we’re acting now to support people struggling to pay their bills. Our customers have the second lowest bill in the UK, at around £1 per day, but we know that for some, paying this remains a challenge.

“I’m pleased to announce a commitment today to help thousands more people on low incomes to reduce their water bill by up to 90%.”

According to the Consumer Council for Water, 6% of people in the Midlands are classed as being in water poverty. Water poverty applies to those customers who spend more than 5% of their total income (after household costs) on their water bill. Research by management consultants CEPA suggests 6.5% (around 1.5m) households in England and Wales are in water poverty. Severn Trent believes supporting an extra 100,000 people will directly help those in water poverty, supporting a total of 315,000 of the company’s most financially vulnerable customers.

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

“No one should have to worry about being to afford their water bill so we’re delighted to see Severn Trent putting its hand in its own pocket to help thousands more low-income households at a time of real crisis for many people.”

“Our independent review of water affordability set out a clear path to ending people’s worries over water bills and with the support of companies like Severn Trent and the wider water sector we can ensure people struggling to pay always get the help they need, when they need it most.”

Today’s pledge complements Severn Trent’s other financial customer support schemes, which have helped over 627,500 people pay their bills.

David Black, Ofwat CEO said:

"No one should have to choose between paying for water and paying for food. We're pleased to see Severn Trent recognising the increased pressure facing customers and acting now to help those struggling in water poverty. Other companies should look to do more to respond to the cost of living worries and we will be issuing new guidelines to signal the increased expectations of Ofwat and the public."

CBI Midlands Director Rick Blackmore said the rising cost of living is having an acute impact on families and businesses across the country, and support for those most in need is essential and welcome.

Leader of Birmingham City Council, Cllr Ian Ward said:

"The cost of living crisis is hitting the people of Birmingham hard and they need help now, so this is a very welcome move to cut water bills in a time of crisis. We've been in talks with Severn Trent to get help to those in greatest need and this announcement will make a huge difference to thousands of households currently struggling to make ends meet."