Water sector still waiting on support for single social tariff

One year on from its affordability review that urged Defra to introduce a single social tariff for all water customers, CCW has praised the “very significant progress” made by the sector in 12 months but underlined that financial pressures continue for billpayers.

In a follow up review, the consumer watchdog highlighted that rises in inflation and energy bills have compounded the need to implement recommendations made in its previous report published in May 2021.

CCW urged UK and Welsh government to introduce legislation for the water affordability scheme at the earliest opportunity and for Ofwat to include provisions in the 2024 price review to enable the introduction of a single social tariff.

The proposed tariff, which was central to the report commissioned by English and Welsh governments, is expected to be included in a consultation by the governments.  CCW hopes to see it implemented by April 2025.

Ofwat’s recently published draft framework for the next price review for 2025 to 2030 suggested companies make plans both with and without such a scheme being introduced.

CCW’s latest review called upon water companies to find opportunities to use company funds to enhance available support and to make progress towards developing of an online hub to share support needs, as suggested in the affordability review.

Reflecting on progress made since the publication, CCW said six out of 10 key recommendations in the report have been fully or largely implemented, whilst 24 out of 40 actions have been applied and another 14 are underway.

Pilots schemes

During the past year, the sector has trialled pilot schemes based on the recommendations from the review, with Wessex Water simplifying how billpayers can access support and raising greater awareness of the help available.

Thames worked with the London Fire Brigade to identify vulnerable householders who would benefit from its Priority Services Register. Elsewhere, Welsh Water changed the billing envelopes sent to customers to raise awareness of financial support. This was designed to reach people who did not read or even open their bill. CCW said despite no immediate increase in assistance uptake, the company planned to persevere with the messaging.

South Staffs and Cambridge also added information to the outside of envelopes to encourage householders to get in touch about support and alternate payment arrangements, with messages tailored to different community groups.

Meanwhile, Severn Trent tried numerous engagement approaches such as through schools, community centres and places of worship about priority services as well as experimenting with behavioural science to see if people would be more encouraged to sign up to services knowing other people have joined.

Yorkshire targeted a part of Sheffield known to have lower awareness of support and worked with community groups, local authorities and charities to spread the word as well as through messages on radio, billboards and social media.

United Utilities was the first company to add a pay-as-you-go option that lets people pay more or less of their water bill depending on their current financial situation, which has seen relatively low take-up although the company will continue to promote the initiative in various ways.