Households in England and Wales will experience a rise in water bills starting in April 2024, with some regions seeing increases of up to 13%. This change, which equates to approximately £33 annually or an additional £2.70 per month, is aimed at funding essential upgrades to water infrastructure, according to Water UK. The national average water bill will reach £639 per year, following a significant increase in charges last year.
David Henderson, chief executive of Water UK, emphasized the necessity of these changes, stating, “We understand increasing bills are never welcome, but the money is needed to fund vital upgrades.” The planned increase surpasses inflation by 2%, coinciding with companies’ commitment to invest £20 billion over the next two years to enhance water supplies and prevent sewage from entering rivers and seas.
Low-income households are particularly vulnerable to the impact of these rising costs, making it crucial for individuals to explore the various support options available. Most water companies provide “social tariffs” designed to offer discounted rates for those receiving specific benefits or meeting certain income thresholds. Some of these discounts can be as high as 90%.
In 2024, a report from Policy in Practice revealed that an estimated £745 million in water bill support remained unclaimed, representing a significant opportunity for those in financial distress. Households with an annual income below £19,995 (excluding benefits) or those receiving income-related benefits, such as Universal Credit, Jobseeker’s Allowance, or Pension Credit, may qualify for these schemes.
Support Schemes and Eligibility Criteria
The support initiatives include caps on annual clean water bills at £143.80 and a lower fixed rate of £95.80 for those receiving council tax reduction or support. Eligibility is determined through individual financial assessments, allowing qualifying customers to receive up to 50% off their annual bill via a reduced metered tariff, specifically for those spending more than 5% of their income (after housing costs) on water bills.
Additional support targets low-income households confronting financial hardships. Customers receiving Pension Credit or with a household income below £21,011 (plus £1,500 per child) may qualify for a 60% reduction in their first year and 40% in the second year. Those awaiting a decision on their Universal Credit application may have their charges fully waived for a period of eight weeks.
Other specific criteria include caps on bills for households with incomes below £12,000 (one person), £18,100 (two people), or £19,100 (three or more people), with annual charges capped at £319.03 per year (£128.17 for water and £190.86 for sewerage). Additionally, households earning less than £26,000 or households where a member receives Pension Credit may be eligible for discounts of up to 40%.
How to Access Assistance
Households with a water meter can also explore various discount schemes. Eligible households may receive discounts of up to 50% off both water and sewerage charges. Those earning less than £21,000 (excluding benefits) can have their water bill capped at £91.12 per year, providing critical support for low-income households struggling to meet their expenses.
For individuals with a household income below £17,000 (excluding disability benefits), a 50% reduction on their water bill is available. Households earning between £17,000 and £21,000 can receive a 30% reduction. Those earning less than £22,020 and holding savings below £16,000 may qualify for discounts ranging from 45% to 90%.
For those qualifying solely through Pension Credit, a 45% discount is available. Bills can be significantly reduced in the first three years, with 60% off in the first year, 40% in the second, and 20% in the third. Claimants who have no income while waiting for Universal Credit can have their bills waived for eight weeks.
The range of available discounts and support measures highlights the importance of understanding eligibility requirements. With the looming increase in water bills, households are encouraged to check their potential qualifications for financial assistance to help mitigate the impact of rising costs.
