Water bills will
be cut for the most vulnerable households under plans announced by
Environment Secretary Caroline Spelman today.
The consultation published today builds on the findings and
recommendations of Anna Walker’s independent review of charging
for household water and sewerage services and further analysis by
Ofwat on options for tackling high water bills in the South West.
Environment Secretary Caroline Spelman said:
“We know that some households are really struggling with their
water bills, particularly in the South West where people are
paying the highest bills in the country.
“Our plans will increase the help available for vulnerable
households right across England, with special help for people in
the South West who, through no fault of their own, are battling
astronomical water bills during a difficult economic climate.”
Following the Budget commitment to look at how the Government can
help households having trouble paying their water bills and
households in areas with particularly high bills, such as the
South West, the plans propose several options to help customers.
The proposed reforms include:
Enhancing WaterSure: This scheme helps vulnerable households who
pay for their water via a water meter, by capping their bills at
the level of the average bill for their water company. Under the
new plans, bills would be capped at the national average metered
bill if this is lower than the company’s average, with the cost
met by the Government;
Guidance to introduce company social tariffs: This will provide
extra help for those struggling to pay their bills by providing
guidance for water companies on the design of tariffs, including
which households should benefit, what level of cross-subsidy
between households is fair and what concessions should be offered;
and
Help for the South West: Consideration for options that could
reduce the bills of all households in the region, alongside
targeted assistance for low income households that struggle with
their water bills.
Significant investment in infrastructure since privatisation, the
rural character of the area and its low population density have
made water bills in the South West the highest in the country.
The final policies will be included in the forthcoming Water
White Paper.
Notes to editors:
The consultation closes on 17 June 2011 and can be viewed here:
www.defra.gov.uk/consult/water-affordability-1104/.
The Walker Review was an independent review of charging for
household water and sewerage services. It was commissioned by the
previous Government and Welsh Ministers to examine the current
system of charging and to assess the effectiveness and fairness of
current and alternative methods of charging from the economic,
social and environmental perspective. It published its final
report and recommendations in December 2009.
The WaterSure tariff is prescribed through the Water Industry
(Charges) (Vulnerable Groups) Regulations 1999. Currently it caps
the bills of metered households in receipt of a qualifying
means-tested benefit or tax credit at the average bill for their
company’s operating area where the household either has three or
more children living at home under the age of 19 or somebody in
the household has a medical condition which necessitates a high
essential use of water. This year some 31,200 households are
benefitting from WaterSure.
The Water White Paper will drive forward the commitment made in
the Government’s Coalition Agreement to “examine the conclusions
of the Cave and Walker Reviews, and reform the water industry to
ensure more efficient use of water and the protection of poorer
households”.
Other recommendations from the Walker review will be carried
forward as part of Defra’s work on the Water White Paper. A
summary of responses to the Water White Paper online survey can be
seen here:
http://www.defra.gov.uk/environment/quality/water/whitepaper/.
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Contacts:
Defra Press Office
Phone: 020 7238 6600
NDS.DEFRA@coi.gsi.gov.uk
Martin Deller
Phone: 020 7238 5334
martin.deller@defra.gsi.gov.uk