Water companies in England and Wales are planning a significant increase in support in 2025-30 for customers struggling to pay for, or needing extra help with, water and wastewater services – and new research shows that more is needed to make sure the support is delivered to customers.
More support on the way for customers struggling to pay
Earlier this year Ofwat announced its draft decisions on water companies’ business plans for 2025-30 to deliver cleaner rivers and seas, and better services for customers. Final decisions will be announced on 19 December.
While the proposed record £88 billion in investment and the associated increase in customers’ bills in Ofwat’s draft decisions received the most attention, less well known is that water companies’ plans include doubling the proportion of customers that receive social tariff support, which rises to 9% in the 2025-30 period.
In ‘Summary of water companies’ published plans for affordability for 2025-30′ we’ve summarised water companies’ plans for financial support for their customers over the next five years. This support will be funded mostly by other customers, but some companies will also use shareholder money or share financial rewards they receive by meeting targets over the next five years.
Many companies are also planning or running charging trials to keep bills affordable and improve water security for their customers over the long term.
But more help is needed to make sure the support is delivered to customers
Ofwat’s latest cost of living research shows that 1 in 5 billpayers struggled to pay their water bills in the last year.
Despite an increase in awareness of available support, two-thirds of billpayers remain unaware of the help their water company can offer.
Trust in water companies to provide value for money has also declined.
Customers in vulnerable circumstances unaware of extra support available
Customers may struggle to access services for reasons beyond affordability, such as mental health issues or serious illness.
Joint research by Ofwat and Ofgem highlights complex needs among vulnerable customers, who often feel disconnected from service providers and are unaware of available support.
To address these needs, water companies must offer better care at every step of delivering services to customers (‘customer journeys’), along with proactive and tailored support.
Last month, Ofwat published its assessment of water companies’ vulnerability strategies, and highlighted areas where improvements were needed in order for customers to receive the right support at the right time. Companies must now work with customers, customer representatives and others to address our feedback and finalise their final vulnerability strategies by June 2025.
We are also consulting on new standards for how water companies should operate and maintain their Priority Services Registers (PSR) for customers needing extra help.
Significant progress has been made since 2020, with PSRs growing from less than 2% to over 10% of households. However, more work is needed, as our analysis of census data shows that around half of households may be eligible for PSR services.
Water companies need to go above and beyond for their customers
We know many customers continue to struggle with cost of living pressures and need extra help at this difficult time.
We welcome plans for improved financial and extra support services in 2025-30 but urge a cultural shift in water companies towards better service delivery.
When bills are finalised, we expect water companies to communicate clearly, handle complaints efficiently, and ensure everyone who qualifies receives the support they’re entitled to.
This is a golden opportunity to start restoring customer trust. We will hold companies accountable, including imposing fines for poor customer care.
How to ask for extra help from your water company
If you or someone you know is struggling to pay their bill, contact your water company.
More information on the type of support water companies can offer is available from the Consumer Council for Water’s (CCW) website: https://www.ccw.org.uk/save-money-and-water/help-with-bills/
Do you or someone you know need extra help with their water and wastewater services?
More information is available by speaking to your water company. Further information about extra help services is also available from CCW’s website: https://www.ccw.org.uk/advice-and-support/households/priority-services/