Millions of households across the UK are missing out on substantial financial assistance with their bills, costing eligible homes an average of £194 a year, and Martin Lewis has described the situation as nothing short of 'outrageous'. Both Citizens Advice and the money-saving expert have condemned the current system surrounding social tariffs in the UK. An estimated 3.8 million British households could be benefiting from reduced water bills through these schemes.
Experts warn that £745 million is going unclaimed every year as a direct result, representing an average shortfall of nearly £200 per household. Mr Lewis argues that millions of Britons could be significantly reducing their water bills if the rules were made more transparent. Social tariffs offer a discounted rate on water charges, and those claiming certain benefits or living on a low income may well be eligible.
Martin Lewis calls system 'outrageous'
During a select committee session last week, he told MPs that '3.8 million households are missing out on water social tariffs, which is just outrageous'. He contended that water companies are falling far short when it comes to publicising available support, leaving far too many people without assistance they are rightfully entitled to, reports the Mirror. His remarks drew on research compiled by Policy in Practice, whose findings revealed that 3.8 million qualifying households are not receiving a water social tariff. The organisation claims this results in '£745 million unclaimed each year, an average loss of £194 per household, simply because people are unaware of the help available or find the application process too difficult.'
How social tariffs work
Every water provider in England and Wales operates a social tariff scheme. Consumers are advised to get in touch with their provider to find out what they have available. The offerings and eligibility requirements differ between suppliers. You can find your water company and details of their available schemes via the Consumer Council for Water. If you are struggling to keep up with your bills, your supplier is prohibited from cutting off your water supply and must instead pursue any outstanding debt through the courts. If you are finding your water bill difficult to manage, it is strongly advisable to contact your supplier at the earliest opportunity. The vast majority of suppliers are able to provide guidance and support to help you keep on top of payments. Many suppliers also operate a hardship fund that could contribute towards covering your water bills.
Citizens Advice slams lack of standardisation
Anne Pardoe of Citizens Advice told the same gathering of MPs: 'We have done quite a lot of work around social tariffs, and the NAO and Martin are absolutely right: awareness of those tariffs is really low, as is take-up. A really big problem is a lack of standardisation, as Martin said. It makes it really difficult for people to work out what they are entitled to and to claim it. In water, there was a critical opportunity to deal with standardisation. A lot of organisations were calling for a single social tariff, and the Cunliffe Independent Water Commission also recommended that, but the Government decided not to move ahead with it at this stage. I think that was a really big missed opportunity.'
On the issue of social tariffs being difficult to access, Mr Lewis also told the public accounts committee meeting: 'Do you know what your equivalised income is? Because I don't know what my equivalised income is. But that's what you're asked if you have an equivalised income. I suspect none of us in the room know what our equivalised income is.' An MP on the committee asked: 'What does it mean?' Mr Lewis replied: 'I still don't know. That's the phrase... that was one of the water companies.... for whether you're entitled to a social tariff or not. If your equivalised income is below X amount. The point I'm making is, well, if none of us in this room know what that means and I don't know what that means, then I think it's probably not a good way to communicate it to vulnerable people.'
Am I eligible for a social tariff?
According to Citizens Advice, you could qualify for assistance with water bills if you have no earnings or a restricted income, or if you are receiving benefits. You may be able to: apply to your water company for a reduced rate – these are sometimes referred to as 'social tariffs'; get your water provider to cap the maximum amount you'll need to pay for water each year; or pay a lower rate for the water you consume. Visit the Consumer Council for Water website to check whether you could be eligible for support you are currently not receiving.
