The little-known schemes that could slash your water bill by 90%

09/14/2024 02:54 AM

HOUSEHOLDS could get up to 90% off water bills due to little-known schemes.

Each water company has its own social tariff for low-income customers – but the discount varies based on where you live.

Residential households can't choose their water supplier, so it's pot luck regarding the generosity of your supplier.

Another issue is that social tariffs aren't widely advertised and they tend to be hidden away on water companies' websites.

The best thing to do is check your supplier's website and see if you meet the eligibility criteria.

How much help can you get?

Eligibility for social tariffs usually depends on your household income and specific circumstances.

Some water companies will do a deep dive into your financial situation while others will require evidence that you claim certain benefits such as Universal Credit or Pension Credit.

Some social tariffs cap bills at a certain amount, while others offer discounts on average or actual bills.

For example, South East Water's Social Tariff scheme is available to households with an income of less than £18,725 a year, excluding certain benefits. If you qualify, your annual bill will be capped at £182.82 (East) or £146.94 (West). 

Much less generous is Yorkshire Water's WaterSupport scheme. This caps bills at £364 for 2024/25 and requires an income of less than £19,000 a year.

Anglian Water, Essex and Suffolk Water and Northumbrian Water all offer bill discounts described as "up to 50%".

Anglian Water assesses individual circumstances before moving customers to a social tariff.

But both Essex and Suffolk Water and Northumbrian Water have quite specific criteria: either a household income of less than £23,933, or a member of your household being in receipt of Pension Credit, and an annual water bill which is 3% or more of your net household income after housing costs.

Some other suppliers offer much bigger savings. For example, Southern Water's Essential tariff offers discounts up to 90% off the average bill.

To qualify you need a household income of less than £22,010 (excluding some benefits) and savings of less than £16,000.

Other water companies potentially offering discounts of 85% or more include Wessex Water, South West Water and Bournemouth Water.

Could a single tariff help?

According to the CCW, the independent body for water consumers, more than 2 million customers are receiving some form of support with paying their water bill.

This includes more than 1.3 million low-income households in England and Wales on social tariff schemes.

But millions could be slipping through the net due to a lack of awareness of social tariffs.

Andy White, senior leader for social policy at the Consumer Council for Water (CCW), said: "Every water company has been allowed to develop its own social tariff scheme, which has led to some big variations in eligibility criteria and the level of support provided."

The CCW, Citizens Advice and several other charities have been campaigning for a single scheme across England and Wales with fairer and better targeted support for those that need it most.

Last month Independent Age wrote an open letter to the Minister for Water and Flooding, Emma Hardy, asking the government to help people in poverty with their water costs.

Any decision regarding a single social tariff would be made by minsters and it's understood that discussions are ongoing.

Tom MacInnes, interim director of policy at Citizens Advice, said: "It's essential that people on the lowest incomes can afford their water bills and are shielded from the above-inflation price rises we're set to see over the coming years. Yet current social tariff schemes are falling far short of ensuring this." 

Water bills typically increase each year. The water regulator Ofwat has proposed that bills should increase by an average of £19 a year between 2025 and 2030, a rise of 21% over the five-year period.

Some water companies would raise their bills by much more than this if they could get away with it.

Last month saw Thames Water beg Ofwat to let it hike bills by 59% over the next six years.

What is watersure?

WaterSure is different to a social tariff.

Available across England and Wales, the water assistance scheme is targeted at metered customers who are in receipt of certain benefits and have to use a lot of water due to a medical condition or the size of their household.

It caps bills at an amount set at your supplier's average household cost.

This figure varies between water companies. For example, the average annual bill for 2024/25 with Severn Trent is £438, while at Thames Water it is £471.

To be eligible for WaterSure, you must have a water meter (or have applied for one), be on a means-tested benefit (such as Universal Credit or Income Support), and have a need to use additional water.

How are water bills calculated?

Households are charged for water in one of three ways: unmetered based on your home's rateable value, via a water meter, or an assessed household charge .

If your water is unmetered, your bill is based on your home's 'rateable' value.

This depends on your property's size and location.
If you have a water meter, your bill will depend on how much water you use.

You can save money by using less. In general, if there are more bedrooms in your home than people, you'll save money with a water meter.

All properties built since 1990 have a water meter installed, while occupants of older homes can ask their water company to install a meter for free.

But some properties won't be able to have a water meter. For example, many blocks of flats have shared pipes or inaccessible pipework.

If you're rejected for a water meter, you'll be put on your water company's 'assessed household charge'. This is based on the average metered bill for the number of bedrooms your home has.

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