Record the customer number in the social rate

The number of households asking for help with their water bills in England and Wales rose by more than 250,000 last year, according to figures seen by the BBC, but support varies depending on where you live.

Water companies spent almost £259m on “social rates” last year – discounted bills to help low-income households – but every have different criteria and offers various levels of discounts.

Those on Welsh Water’s social tariff saw an average bill reduction of £287, while Southern Water customers saw an average of £110 in 2023-24.

The Consumer Council for Water (CCW) is calling on companies to have a single scheme so that everyone gets the same help everywhere.

The number of households on the social tariff has increased fivefold since last year to a record 1.6 million. Spending on them increased by a quarter, according to CCW data.

It said the increase was due to the company doing more to promote support schemes, sharing data between the government and councils which helped identify customers in need, and the cost of living which led to more households applying for help.

But there are concerns that support is not the same across the country and that people may miss out on help because of where they live.

Each company’s social rate scheme varies based on things like household income, benefits received, individual water bills and the amount of people’s savings.

When Liverpool’s Morgan Davies and Ellie Bryan found themselves facing no-fault evictions, the cost of the move hit their bills.

“We’re still paying some bills from the old house. Our water bill is between £300 and £400 in debt from another house, combined with this house, we’ve just got all the payments,” said Ellie, 31.

Morgan, 25, added: “We’re over £4,000 in debt. We’ve had to do a lot of payment plans and it’s got to the point where we have to get a payment plan for another payment plan.

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

The bill is about £39 a month so it’s about £25.

“I’m telling you, don’t be ashamed to admit you didn’t pay. You just need to ask for help,” Ellie said.

“If you are struggling with debt, call the company because nine times out of 10 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 the water company. And unlike electricity and gas, people can’t just switch to a competitor.

Data from CCW shows that among the 10 largest water and sewerage companies, the average bill reduction in 2023-24 ranges from £287 for people supplied by Welsh Water (Dŵr Cymru) to £110 for Southern Water customers.

CCW data is not calculated as a percentage of individual bills, which vary greatly due to regional variations and usage rates for those on meters.

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

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

Southern Water told the BBC it had some of the lowest bills in the country and said it understood there were households struggling with the cost of living.

“This is why we keep the minimum discount for those in need at 45%, increasing it to 90% if necessary.

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

Andy White, senior leader for CCW, said more people are seeking help through social rates.

“However, it also shines in the fact that there are significant differences in the support available to customers depending on who serves as a water company,” he said, describing it as a “postal code lottery”.

“Whether you actually apply for help and qualify for it, and how much help it is, depends on the scheme each company offers,” he said.

“And we don’t think that people should have different supports depending on where they live.”

CCW wants the company to have a single social rate for those who cannot pay for water and all contribute to a shared pot so that the costs do not fall heaviest in the poorest areas.

Water UK, which represents water companies, said: “Ultimately, the government should set guidelines on social rates, but water companies offer higher reductions than other utilities such as energy.”

The government says it is committed to supporting vulnerable consumers with bills and tackling water poverty, and has announced an “Independent Water Commission which will report back next year with recommendations to protect customers”.

Each company applies its own criteria to determine whether a person can have a social rate.

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

Companies may ask about savings. South Water it says that 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 the Essentials rate.

Welsh waternot for profit, offers support if someone in the household receives at least one means-tested benefit and has a different income threshold depending on the number of people living there.

Social rates are not the only support offered. The CCW data also shows an extra £66m going to more than 200,000 accounts in a separate scheme called Watersure, which covers bills for people on meters who claim certain benefits and use high water.