More work needed on social tariffs, says CCWater
The number of low-income households in England and Wales receiving financial help from their water company has almost doubled to more than 400,000 in the past year, but much more needs to be done to tackle affordability challenges, according to the Consumer Council for Water (CCWater).
The water watchdog has welcomed the rise in support for cash-strapped customers but warned that it falls some way short of the 3 million households that say their water bills are not affordable.
CCWater’s report Staying afloat: Addressing customer vulnerability in the water sector (2016/17) shows that more than 260,500 low-income bill payers have seen their water and sewerage charges slashed through social tariffs – up 93 per cent on the previous year. A further 141,000 households are also registered for the industry’s WaterSure scheme. This can cap the bills of low-income customers who have high essential water usage needs.
But the watchdog remains concerned that ongoing financial assistance with water bills is only available to around one in five customers who need it.
The consumer body has worked with the industry to boost awareness of customer-funded social tariffs but funding for some of these schemes has already dried up.
CCWater is now challenging water companies to find the additional money needed to reach a greater number of customers.
Andy White, Senior Policy Manager at the Consumer Council for Water, said: “Water companies have taken big strides towards helping more customers in financial hardship, but it’s still only scratching the surface.”
“No one should have to struggle to afford something that is so essential for them to live a healthy life. Water companies have the power to change this by dipping into their own pockets to increase the amount of support on offer.”
CCWater’s report also shows there has been a steady rise in the number of customers in vulnerable circumstances who have signed up for the wide range of additional support services that are available through water companies’ Priority Services Registers. These services might include extra help for customers when a water supply is interrupted or bills in large print, braille and audio formats.
Over the past five years the number of customers signed up to these registers has increased by nearly 40 per cent but CCWater remains concerned about the large regional variations in take-up. This suggests some water companies have a lot more to do to raise awareness of the extra support customers can tap into.
Responding to the report, Water UK Chief Executive Michael Roberts said: “The big increase in help being given to customers by their water companies reflects the major emphasis the industry places on supporting vulnerable people. Although water bills usually cost households just over £1 a day we know that many people can struggle to pay, which is why water companies provide them with help worth more than £40 million each year and are constantly looking at ways to target support at those who need it most. As the report acknowledges, we are on track to deliver financial support to an additional 1 million people by 2020.”
The issue of providing support to vulnerable customers will also be addressed during the next price review by Ofwat, due to be implemented in 2020.
- Dee Valley Water announces new customer challenge chair Dee Valley Water has announced that it has appointed Clare Evans as its new Customer Challenge Group (CCG) Independent... Read More >
- Sewer blockages cost water firms £70M last year Around £70M was spent by water companies in England and Wales during 2013-14 to clear more than 300,000 sewer blockages,... Read More >
- Tory MP Elphicke calls for windfall tax on water companies Nine of the largest water companies in the UK have accrued operating profits totaling nearly £10B since 2010 while only... Read More >
- Comment: Sludge all set for reform The opening of the bioresources market presents water companies with an opportunity to do things differently, but what... Read More >
- Interview: Ben Jeffs, Chief Executive, MOSL “The whole industry has really mobilised around market opening, and the water companies deserve credit for that.” Read More >
- Close-Up: Who will be the big fish in the new water retail market? With a £2.5BN new market for non-domestic water retail to open in England in April, joint ventures, incumbents and new... Read More >
- Water Industry Procurement: could Brexit provide a fresh start? Could Brexit lead to a re-examination of the procurement rules which govern the water industry and other infrastructure... Read More >
- Industry View: Let's not drop the ball after PR19 There must be better alignment between PR19 strategic plans and actual delivery plans if water companies are to get full... Read More >