BBC
Morgan Davies and Ellie Bryan have had their water bills reduced after a no-fault eviction left them struggling
The number of households seeking help to pay their water bills in England and Wales rose by more than 250,000 last year, according to figures seen by the BBC, but help varies widely depending on the place where people live.
Water companies spent almost £259 million on “social tariffs” last year – reduced bills to help low-income households – but they each have different criteria and offer different levels of reduction.
Welsh Water social tariff recipients saw an average bill reduction of £287, while Southern Water customers saw an average reduction of £110 in 2023-24.
The Consumers' Council for Water (CCW) is calling on companies to set up a single system so that everyone receives the same level of support, no matter where they live.
The number of households benefiting from social rates has increased by a fifth since last year to a record 1.6 million. Related spending increased by a quarter, according to CCW data.
According to the report, this increase is due to companies doing more to promote their support programs, data sharing between government and municipalities helping to identify customers in need, and the cost of living pushing more households to ask for help.
But some worry that help won't be the same across the country and that people might not get help simply because of where they live.
Each company's social tariff system differs depending on factors such as household income, benefits received, individual water bills and the amount of people's savings.
“Help is there if you look”
Ellie Bryan and Morgan Davies
Morgan and Ellie say a welfare rate has helped them manage their debts and be able to provide for their children.
When Liverpool's Morgan Davies and Ellie Bryan found themselves facing no-fault eviction, moving costs saw them fall behind on their bills.
“We are still paying some bills from the old house. Our water bill was between £300 and £400 debt to the other house, combined with this house we just fell behind on all the payments,” says Ellie, 31.
Morgan, 25, adds: “We were over £4,000 in debt. We had to do so many payment plans and it got to the point where we had to get one payment plan for another payment plan.
The couple, who both work as team leaders in a supermarket, received advice from Money Wellness and a letter from water company United Utilities pointed them towards a social tariff.
Their bill went from around £39 a month to around £25.
“I would say don't be embarrassed to admit that you are late on some payments. You just need to ask for help,” says Ellie.
“If you're struggling with debt, call the company because nine times out of ten they have a solution for you. There is help if you look.”
But who gets this help and to what extent varies depending on which water company people rely on. And unlike electricity and gas, people can't just switch to a competitor.
CCW data suggests that among the 10 largest water and sewerage companies, the average bill reduction in 2023-24 ranged from £287 for those supplied by Welsh Water (Dŵr Cymru) up to £110 for Southern Water customers.
CCW data is not calculated as a percentage of individual bills, which differ significantly due to regional variations and usage levels of meter users.
It also does not distinguish between assistance to customers who obtain water and sanitation supplies from different companies.
In England and Wales, the average bill was around £445 in 2023-24, rising to £473 for 2024-25.
Southern Water told the BBC its bills were among the lowest in the country and said it knew some households were struggling with the cost of living.
“That’s why we’ve kept our minimum discount for those who need it at 45%, rising to 90% if necessary.
“We plan to more than quadruple the value of our Hardship Fund to £1.25 million per year and we are expanding our priority services register from 12% to 20% of our customers,” the company said.
“Postcode Lottery”
CCW senior leader Andy White said it was good that more people than ever before were receiving help through welfare rates.
“However, it also highlights the fact that there are significant differences in the support offered to customers depending on which company serves them as a water company,” he said, describing it as a “postcode lottery”.
“Whether you actually get help and qualify for it, and how much you get, depends entirely on the program each company offers,” he said.
“And we don’t think it’s fair that people get different support depending on where they live.”
The CCW wants companies to set up a single social tariff for people who cannot afford water and for everyone to contribute to a shared pot so that the costs do not weigh more heavily on the most vulnerable areas. poorer.
Water UK, which represents water companies, said: “Ultimately it is up to the government to set the guidance on social tariffs, but water companies offer significantly higher discounts than other services public sector such as energy. »
The government said it was determined to support vulnerable consumers with their bills and tackle water poverty, and announced “an Independent Water Commission which will report next year with recommendations to protect customers.”
How do water companies decide who to help?
Each company applies its own criteria to decide whether a person can benefit from a social tariff.
Thames Water's website says its WaterHelp is for people whose bills are more than 5% of their net income and offers a 50% discount to those who qualify, while Yorkshire Water says people could be eligible for its WaterSupport if their household income is less than £19,000. and an annual water bill of more than £364.
Businesses can also ask about savings. Southern Water says people must have less than £16,000 as well as a household income of less than £22,020, or everyone must receive pension credits, to be eligible for its Essentials tariff.
Welsh Water, which is not for profit, offers help if a member of the household receives at least one means-tested benefit and has different income thresholds depending on the number of people living there.
Social rates are not the only form of support offered. CCW data also showed that a further £66m was paid to more than 200,000 accounts under a separate scheme called Watersure, which caps the bills of people using meters who claim certain benefits and have a high water consumption.
