Government help needed for poorer water customers

The government has today been urged to make "radical improvements" to the way customers on low and fixed incomes receive help with their water bills.

In an article by Andrea Cook, a member of the national WaterVoice Council - published today in Utility Week - WaterVoice said that customers needed "clearer, more accessible financial help", preferably through the existing tax credits and benefits system and alongside new options for improving their ability to pay bills.

Ms Cook said: "There is no time for government to drag its heels over finding effective solutions to the problem of water affordability. Price rises are looming large and government departments involved in the review need to take responsibility for finding solutions, rather than defending territories and limiting options.

"It is a matter of urgency that government finds measures, ideally by next April, to moderate the impact of water bill rises on many poor and vulnerable customers and provide specific financial assistance where it is most needed."

WaterVoice has outlined four new options for protecting customers from the worst effects of the bill increases that they will face from Spring 2005: reviewing charges within social security benefits; increasing flexibility in operating the Water Direct scheme; providing Council Tax relief or a discount towards water and sewerage charges; and examining the budgeting system available through Post Offices in Eire and its possible extension to Post Office bank accounts in the UK.

If Ofwat's draft price limits are confirmed in December, water bills for 2005-06 will rise by an average of 7.8%, plus inflation, across England and Wales. However, millions of customers (including those of Severn Trent Water, South East Water, South West Water, Thames Water and Welsh Water) will face one-off increases in excess of 10%.

Andrea Cook added: "Whilst WaterVoice has acknowledged that Ofwat's price proposals are better than had been feared, there is still no effective support from government for those on low and fixed incomes who will not be able to absorb any increase."

(gmcg/mb)