Millions of struggling households are missing out on the chance to slash water bills by up to 90 percent – saving hundreds of pounds.
The industry regulator Ofwat has announced that privatised water firms will be able to increase bills by an average of 21 percent over the next five years.
The change will add £94 to average bills over the period 2025-2030 – although residents in some parts of the country face even bigger rises.
For example, Southern Water is set to impose a 44 percent rise over the five years, taking its average bill up by £183 to £603.
At the same time, the average bill for customers at troubled Thames Water, which is the biggest supplier, is set to rise 23 percent to £535 a year.
Industry research found that 18 percent of households are struggling to pay for water and sewerage bills, yet only 6 percent take advantage of social tariffs that offer substantial reductions.
Experts at the Consumer Council for Water have provided details of how people struggling to cover their bills can take advantage of help – such as a Social Tariff – that could cut the annual cost by up to 90 percent.
The issue was discussed on the BBC this morning by their cost of living correspondent Colletta Smith.
How to qualify for a Social Tariff for water
Eligibility for being moved on to a Social Tariff differs depending on the water company and where you live in England and Wales.
However, generally, if you are in receipt of any of the following benefits you will be entitled to help:
- Income support
- Universal Credit
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
- Pension Credit
- Council Tax Reduction/Support
How much can being on a Social Tariff save a household
The figure varies depending on the water company so you will have to check with your supplier.
For example, a customer of Southern Water qualifies if they have a household income of less than £21,000 (excluding Disability Living Allowance or Personal Independence Payments) and savings of less than £16,000. Households who have someone in receipt of pension credits also qualify.
Bills at Southern Water will be discounted between 45 percent and 90 percent. The discount for households with someone receiving pension credits is 45 percent.
Details on social tariffs and what each company offers can be found here.
Should I switch to a water meter?
Some households find they can cut their bills by hundreds of pounds. If your water company can’t fit a meter, you may benefit from an assessed charge.
The Consumer Council for Water offers an online calculator to assess whether it would be a good idea to switch. Details can be found here.
Debt support schemes
Ask your water company about its debt support scheme. These can reduce debt if customers stick to a payment plan. You will need to make payments against a pre-agreed payment plan set by your water company.
Financial hardship funds
See if your water company has a fund that can help you clear your debt. Grants can be awarded to help with water debt or other financial difficulties.
Bill cap scheme – WaterSure
This scheme caps the water and sewerage bill of customers in receipt of income-related benefits who have a water meter, and either a large family or member of the household with a medical condition who uses lots of water. Eligibility rules apply.
Water Direct – using benefit payments
This scheme gives you the option to pay your water and sewerage charges through your welfare benefits if you are already in debt with your water company.
Flexible payment plans
Your water company can offer flexible payment plans (weekly, fortnightly or monthly) and in some cases can offer ‘payment breaks’ to help you through short-term financial difficulties.
Payment breaks
Your water company can offer a payment break if you temporarily need to reduce or stop your payments for a limited time.
Grant Search Tool
See if you might be eligible for other financial help through a charitable grant to help boost your income. The Consumer Council for Water offers a grants search tool here.
Help if you live alone
In the rare circumstances that you request a water meter but your water company is not able to fit one, they must give you the choice to switch to a fixed single occupier tariff. If you stop living alone, you would no longer be eligible for this tariff.
Organisations that can help
For free, independent advice to those experiencing financial problems, there is list of organisations that help if you’re struggling to pay.
Details can be found here.
Save water in the home
- Fix any leaks including dripping taps
- Avoid using the half-load settings on dishwashers and washing machines
- Steam your vegetables
- Reuse glass and mugs
- Use leftover ice cubes and drinking water to irrigate plants
- Don’t run the tap until the water’s cool – keep a jug of water in the fridge for instantly cold drinks instead
- Use fewer pots/pans and utensils when cooking. The less you use, the less water needed to wash up
- Only boiling the kettle for exactly what you need is an easy way to save around £50 a year
- Consider taking shallower baths. Reducing your baths by just a third can save around £170 a year
- Turn taps off whilst brushing teeth. A family of four could save £100 by avoiding running the tap unnecessarily
- Shorten your shower to 2 minutes. A family of four could save £280 a year on water and energy costs
