Warning tens of millions will battle to pay | EUROtoday
Millions of households in England and Wales will battle to pay their water payments once they go up, a client watchdog has warned.
The water regulator, Ofwat, has provisionally mentioned payments would rise by a median of £19 a yr – or 21% – between 2025 and 2030.
But in a survey of 9,500 households carried out by the Consumer Council for Water (CCW), some 18% mentioned they have been already fighting payments and 40% mentioned they might battle to afford these rises.
Water corporations mentioned they have been proposing a rise in help to struggling households to guard weak clients.
Ofwat and water corporations have been locked in tense negotiations over how a lot they’ll have the ability to cost for the 5 years from April subsequent yr.
In this main survey from the Consumer Council for Water (CCW), clients throughout 19 water firm areas have been offered with the proposed invoice rises that have been adjusted for inflation.
Some 40% of the 9,500 folks requested mentioned they might discover invoice rises troublesome to afford. Of these:
- 54% mentioned they must reduce on non-essentials to pay for it
- 43% mentioned they might use much less water
- 38% mentioned they might reduce on meals procuring and different necessities
While 75% of households surveyed supported their water corporations’ plans for funding, that fell to 58% once they have been reminded of the related invoice rises.
Mike Keil, chief govt of the CCW mentioned: “These bill increases would put an intolerable strain on the finances of millions of households.”
Every water company has a scheme which can help reduce your bills if you’re on a low income, but eligibility and support varies by company. The CCW is calling for a single social tariff across England and Wales to end what it calls a “postcode lottery of assistance”.
Ofwat and the Environment Agency are still continuing with investigations into all water companies in England and Wales after sewage spills into England’s lakes, rivers and seas more than doubled in 2023.
Mr Keil said customers wanted to see investment but also “must see proof their cash is being properly spent” to repair trust in water firms.
In July, Ofwat provisionally said bills would rise by an average of £19 per year between 2025 and 2030 – totalling a £94 increase, or a 21% rise, over that five year period. That increase does not include inflation.
The bill hike varies by region with the regulator agreeing to a rise of 44% for Southern Water, and 11% for Northumbrian Water.
Since July, some companies have asked for further increases. For example, Thames Water, the UK’s largest water company, was given the go-ahead to lift bills by 23%. It has since said it needs to raise bills by 59%, in order to keep operating as normal.
The BBC understands Ofwat is considering permitting bigger bill increases for some companies when it makes a final decision in December, to reflect higher financing costs.
Responding to the CCW survey, Water UK, which represents the sector, said companies wanted to provide more help to customers struggling with bill rises.
“We urgently need investment in our water and sewage infrastructure,” a spokesman mentioned.
He added the survey confirmed there was widespread public help for funding to safe water provides and cease sewage spills.
“However, we understand increasing bills is never welcome,” he mentioned.
Ofwat mentioned it could “fully consider” the findings from the CCW analysis.
“It is also clear the majority of customers accepted the investment being proposed and the increase in bills needed to fund it, but it is crucial companies deliver the meaningful improvements this investment is designed to bring”, a spokesperson mentioned.
“Performance in the past has not been good enough. This is the challenge the companies will need to meet in the years ahead – and we will be closely monitoring progress as they do.”
What if I can not pay my water invoice?
https://www.bbc.com/news/articles/ce9gve1grjmo