Urgent action needed to protect cash-strapped households from soaring water bills
Stronger and fairer support is urgently needed to protect struggling households from the largest rise in water bills since privatisation of the water industry 36 years ago.
The Consumer Council for Water (CCW) has warned many of the most financially vulnerable households will not be able to cope with a £123 (+26%) increase to the average household water and sewerage bill in England and Wales from 1 April. The rise was confirmed today by Water UK and will take the average water and wastewater bill from £480 to £603.
Some households face even steeper rises with the increases for the main water and sewerage companies ranging from 19% to 47%. Other factors, such as whether a customer is metered and how much water they use, means the bill changes will vary considerably for customers depending on their circumstances.
The bill rises will fund much-needed investment to improve services for customers and to clean up our rivers and seas, but CCW is concerned about the impact these increases will have on millions of struggling households.
New research from CCW has laid bare the challenges already facing many bill-payers, with more than two in five (44%) revealing they have already reduced spending on essentials like food and heating to ensure they can afford household bills, including water. One in four (25%) households with a water meter said they had reduced what they considered to be essential water use to keep bills affordable.
Water companies are increasing financial assistance for customers struggling with their bills over the next five years, but CCW believes some companies have not shown enough ambition to ensure everyone can afford their water bill. Customers also continue to be faced with a postcode lottery of company social tariff schemes, which means the level of support and who is eligible varies considerably across England and Wales.
These rises are the largest we’ve seen since privatisation and will heap considerable pressure on millions of customers who are already having to make difficult choices. Customers want to see investment in improving services and cleaning up our rivers but that can’t come at an unbearable cost to struggling households.
Around 2.5 million households are already in debt to their water company and there is a danger that number will grow unless some companies show more ambition around financial support. The existing safety net for customers who cannot afford their water bill is not strong enough. That’s why we urgently need a single social tariff scheme to provide fair and consistent support across England and Wales.
As part of its latest research, CCW also delved more deeply into the experiences of people trying to manage household bills on a low income. Many described feeling overwhelmed by stress and anxiety – even to the point of despair. There was also growing isolation, as financial hardship made socialising nearly impossible.
The stress on my mental health of trying to survive financially. It’s been wearing me down for two years now, and it’s got to the point where I literally can’t cope any more.
However, those that had reached out for support from their water company with bills said they had found the process straightforward and the help they received had made a tangible difference.
CCW is encouraging households to stay one step ahead of the April bill rises by following its top tips:
See if you’re eligible for a cut-price social tariff: More than 1.6 million low-income households are currently receiving cheaper bills through water companies’ social tariffs. Eligibility and the level of support varies from company to company, but the average annual saving is around £160. CCW guide to these tariffs.
Trial a water meter: 2 in 5 households in England and Wales still don’t have a water meter and some of these would benefit from switching. Not everyone will be better off with a meter but for some households the savings can be considerable. And, unless you live in a region where metering is compulsory, you can trial a meter for up to two years and switch back during that time if you are unhappy. CCW’s water meter calculator can help you work out if you might save with a meter.
Reduce your use to save water, energy and money: Much of the water we use in the home comes from the hot tap. That means if you have a water meter you can double up on water and energy savings too. If every person in a family of four reduced their daily shower time by two minutes they could save around £200 a year (water and energy combined).
Water companies also offer a range of other support from payment breaks to debt write-off schemes.
Take a look at Water UK’s list of average bill changes for all the individual water companies