Record numbers of shoppers on social tariffs | EUROtoday

The variety of households searching for assist with water payments in England and Wales rose by greater than 250,000 final yr, in keeping with figures seen by the BBC, however assist varies extensively relying on the place folks stay.

Water firms spent virtually £259m on “social tariffs” final yr – discounted payments to assist low-income households – however they every have totally different standards and provide totally different ranges of low cost.

Those on Welsh Water social tariffs bought a median invoice discount of £287, whereas Southern Water clients bought a median of £110 off in 2023-24.

The Consumer Council for Water (CCW) is asking on companies to have a single scheme so that everybody will get the identical stage of assist wherever they stay.

The variety of households on social tariffs has risen by a fifth since final yr to a document 1.6 million. Spending on them rose by 1 / 4, in keeping with CCW knowledge.

It stated the rise was all the way down to firms doing extra to advertise their assist schemes, knowledge sharing between the federal government and councils serving to to establish clients in want, and the price of dwelling resulting in extra households searching for assist.

But there are issues that assist will not be the identical throughout the nation and that individuals could possibly be lacking out on assist merely due to the place they stay.

Each firm’s social tariff scheme differs based mostly on issues like family earnings, advantages obtained, particular person water payments and the way a lot folks have in financial savings.

When Morgan Davies and Ellie Bryan from Liverpool discovered themselves dealing with a no-fault eviction, the prices of shifting noticed them fall behind on their payments.

“We’re still paying off some of the bills from the old house. Our water bill was between £300 and £400 in debt from the other house, combined with this house, we just got 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 was getting to the point where we had to get a payment plan for another payment plan.”

The couple, who both work as supermarket shift leaders, got advice from Money Wellness and a letter from water company United Utilities pointed them towards a social tariff.

Their bill went from about £39 a month to about £25.

“I’d say don’t be embarrassed about admitting you’re behind on some payments. You just need to ask for help,” says Ellie.

“If you’re struggling with debts, call the company because nine out of 10 times they have a solution for you. There is help out there if you look.”

But who gets that help and to what extent varies depending on which water company people are with. And unlike with electricity and gas, people cannot simply switch to a competitor.

Data from the CCW suggests that among the 10 biggest water and sewerage firms, the average bill reduction in 2023-24 ranged from £287 for people supplied by Welsh Water (Dŵr Cymru) down to £110 for customers of Southern Water.

The CCW’s data is not calculated as a percentage of individual bills, which differ significantly owing to regional variations and usage levels for those on a meter.

It also does not separate out support for customers who get water and sewerage from different companies.

Across England and Wales, the average bill was about £445 in 2023-24, rising to £473 for 2024-25.

Southern Water told the BBC it has some of the lowest bills in the country and said it knows there are households struggling with the cost of living.

“This is why we’ve kept our minimum discount for those in need at 45%, rising to 90% if necessary.

“We’re planning to more than quadruple the value of our Hardship Fund to £1.25m per year and we’re extending our Priority Services Register from 12% to 20% of our customers,” the company said.

Andy White, senior leader for the CCW, said it was good that more people than ever were getting help through social tariffs.

“However, it also shines a light on the fact that there are significant differences in the support that is available to customers depending who serves them as a water company,” he stated, describing it as a “postcode lottery”.

“Whether you actually get the help and qualify for that, and how much help that is, depends entirely on the scheme that each company is offering,” he said.

“And we don’t think it’s right that people should have different support depending on where they live.”

The CCW wants companies to have one social tariff for people who cannot afford their water and to all contribute to a shared pot so that the costs do not fall heaviest on the poorest areas.

Water UK, which represents water companies, said: “Ultimately it is up to Government to set the guidance on social tariffs, but water companies offer significantly higher reductions than other utilities such as energy.”

The authorities stated it was dedicated to supporting susceptible shoppers with their payments and addressing water poverty, and had introduced “an Independent Water Commission which can report again subsequent yr with suggestions to guard clients”.

Every company applies its own criteria for deciding whether someone can have a social tariff.

Thames Water’s website says its WaterHelp is for people whose bills are more than 5% of net income and offers a 50% discount to those who qualify, while Yorkshire Water says people might be eligible for its WaterSupport if they have a household income below £19,000 and an annual water bill of more than £364.

Companies may 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 that everyone must be receiving pension credits, to be eligible for its Essentials tariff.

Welsh Waterwhich is not for profit, offers support if someone in the household receives at least one means-tested benefit and has different income thresholds depending on how many people live there.

Social tariffs usually are not the one type of assist on provide. The CCW knowledge additionally confirmed an extra £66m went to greater than 200,000 accounts on a separate scheme known as Watersure, which caps payments for folks on meters who declare sure advantages and have a excessive water use.