Advocates are calling for water companies to provide greater support to low-income families following the announcement of bill increases.
On 19 December 2024, the water regulator Ofwat announced that bills will increase by 36% over the next five years, which means an average increase of £31 every year for the next five years in England and Wales, considerably higher than the expected increase of £20 a year per household.
The Consumer Council for Water’s senior leader for social policy Andy White explained that even though research showed there was widespread support for investing in infrastructure, that was outweight by concerns about how low-income households will be impacted.
White said: “Obviously, we are concerned about the impact this will have on low-income households.
“So we did research and actually, there was a high degree of support for doing the work, but obviously, the price tag, there was more concern for those that were going to struggle with that.
“Around two in five households have said that they would struggle to pay when the increases were expected to be as high as 20%.
“It’s never been more important that the support is in place to help those people, that people are aware of that and take advantage of that help.”
According to Ofwat, South East Water’s water bills are expected to increase by 39%.
Their average water bill is set to rise from £232 in 2024/2025 to £281 by 2029/30.
White stated 1.6million households are already receiving support through social tariff schemes which lower bills, and water companies have committed to double the number of households receiving help over the next five years.
In addition, he proposed the need for a single social tariff scheme.
He said: “At the moment we’ve got a postcode lottery where different schemes operate in different water company areas.
“We’d like to see a single scheme that is funded sufficiently to eradicate water to poverty because we think that even with the improvement in financial support because of the increase in bills, it’s still going to leave maybe around a million households in water poverty.
“In other words, it will leave families spending more than 5% of their income on water after housing costs.”
White reported that out of households already on a meter, 25% have mentioned they are are already cutting back on essential water use to keep bills low.
He said: “There’s a real risk that people don’t use water to meet their actual basic needs.”
He was deeply concerned that many households will choose to pay for water even if it becomes unaffordable, choosing to sacrifice other essentials such as food or heating and saving up to balance their budget.
White urged water companies to protect all individuals who will struggle with those increases and ensure they know assistance is available.
He added: “We’d also like to see more companies committing to contribute funding from profits to help support customers through these financial support schemes.”
Liberal Democrat environment spokesperson Tim Farron MP condemned the decision of water companies.
He said: “Let’s be clear, this is a national scandal that has been ignored by successive ministers who have watched on whilst inept water companies have plunged themselves into unprecedented levels of debt, leaving customers to pay the bill.”
Campaigners such as River Action and Surfers Without Sewage have called out water companies for failing to invest in efficient infrastructure and allowing high pollution levels to seep into waterways.
In response, Ofwat chief executive David Black said: “Significant reduction in sewage spills, further reductions in leakage, and drive up service for customers.”
He explained that £104 billion will be directed into cleaning rivers and seas and securing long-term drinking water supplies for customers.
A spokesperson for Ofwat said: “Water companies in England and Wales are planning a significant increase in support in 2025-30.
“We encourage people to contact their water company to explain their situation so they can be provided with the best support available.”
For more information, vist https://www.ofwat.gov.uk/regulated-companies/price-review/2024-price-review/business-plans/key-facts-and-data-from-water-company-plans/.
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