Citizens Advice responds to Ofwat’s final price determinations
Tom MacInnes, Director of Policy at Citizens Advice, said:
“These price rises will hit many households hard. While it’s encouraging to see help for customers increasing, the current dysfunctional approach to bill support in this industry means that people will continue to miss out.
“Ending the postcode lottery for water social tariffs - cheaper rates for those who need them - is an essential step to shield those struggling to keep pace with rising bills.
“We found that more than two fifths (42%) of those likely to be eligible aren’t aware that water social tariffs exist. The government and suppliers must work together to ensure that no one is missing out on the support they’re entitled to.”
[The following stats are based on Citizens Advice debt client data from October 2023 - September 2024 (a sample of 45,229 client budgets), using PR24 draft determination figures released by Ofwat in July 2024. The figures for current water poverty levels reflect existing social tariff provision, but the figures for projected water poverty levels do not reflect planned social tariff expansion.]
New water costs could push levels of water poverty up 55%, amongst debt clients seen by Citizens Advice, if no increase in water bills support was delivered.
Amongst our debt clients, the number of households in a negative budget - spending more on essential costs than they have coming in - will go up by more than 7%.
In four major water companies’ areas, water poverty rates are set to outstrip social tariff expansion for the debt clients seen by Citizens Advice.
In one example, Citizens Advice predicts a 65% increase in water poverty, set against only a 29% increase in social tariff provision.
Additional data:
The below is according to a nationally representative survey of 2,746 adults across Great Britain, conducted for Citizens Advice by Yonder Data Solutions. Fieldwork took place between 16th October and 21st October 2024:
Of those who had fallen behind on their water bill in the previous 12 months, 2 in 5 were not signposted to any kind of bill support by their provider.
80% of those likely eligible for water social tariff support said that they had never considered applying for one.
Almost half (42%) said this was because they weren't aware of water social tariffs, and 15% said they didn't know how to apply.
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Notes to editors:
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