Water bills in England and Wales are set to rise in April 2024, with some regions experiencing an increase of up to 13%. This change will add approximately £33 to annual water costs, translating to an additional £2.70 per month for consumers. The increase, which follows a record rise in charges last year, will bring the national average water bill to £639 per year. According to David Henderson, chief executive of Water UK, the funds generated are essential for critical upgrades to water infrastructure.
The planned increase is notably higher than the current inflation rate, which raises concerns for low-income households. It coincides with water companies’ plans to invest £20 billion from 2026 to 2027 aimed at improving water supply and preventing sewage from entering rivers and seas. With these financial pressures, it is crucial for households to explore available support options.
Discount Programs for Households in Need
Many water companies provide “social tariffs” that offer significant discounts for qualifying households. These tariffs can reduce bills by as much as 90% for those who meet specific income criteria or receive certain benefits. Unfortunately, a report by Policy in Practice revealed that around £745 million in water bill support went unclaimed in 2024, leaving many families without essential assistance.
Eligibility for these programs typically includes households earning less than £19,995 annually (excluding benefits) or those on income-related benefits such as Universal Credit, Jobseeker’s Allowance, or Pension Credit. For these households, annual clean water bills can be capped at £143.80, with a lower rate of £95.80 for those receiving council tax reduction or support.
Another option for low-income households that spend more than 5% of their income on water bills is a reduced metered tariff. Discounts in this scheme vary from 15% to 85% based on income and the amount spent on water.
Additional Support for Vulnerable Households
Certain provisions are also available for households that receive Pension Credit. If all adults in a household receive this benefit, they may qualify for a discount of around 20%. Households with a total income below £21,011 (with an additional £1,500 per child) may receive a 60% reduction in the first year and 40% in the second year. Those awaiting a decision on their Universal Credit application can have their water charges fully waived for up to eight weeks.
For customers whose annual household incomes fall below £12,000 (for one person), £18,100 (for two people), or £19,100 (for three or more people), there are further discounts available. Under these criteria, bills are capped at £319.03 annually, which includes £128.17 for water and £190.86 for sewerage.
Moreover, households earning less than £26,000 or those with a member receiving Pension Credit can receive discounts of up to 40% on their annual bill if their water charges constitute 3% or more of their net income. Different banding systems operate to ensure that discounts are tailored to individual circumstances, with the lowest combined bill potentially reduced to as little as £59.
As the April hike approaches, it is imperative for households to assess their eligibility for these support schemes. Taking advantage of available discounts can significantly alleviate the financial burden associated with rising water costs.
