Households in Wales struggling to pay their water bills have been warned not to ignore the debt, with Citizens Advice highlighting important protections that are in place. The charity says water companies are not legally allowed to disconnect or restrict a household's water supply because of unpaid bills, but people facing mounting bills could be taken to court if they fail to pay.
Contact your water company early
Citizens Advice says anyone who is struggling should contact their water company as soon as possible and try to agree a payment plan based on what they can afford. The charity warns that ignoring the problem could ultimately result in court action.
Water debts are classed as non-priority debts, meaning households should first deal with debts where the consequences can be more serious. These include rent or mortgage arrears, gas and electricity bills, council tax and court fines.
Check your bill and negotiate payments
Citizens Advice says people should first establish exactly how much they owe and check that their bill is correct. Those with a water meter should compare the meter reading with the estimate on their bill, particularly if they think they have used less water than the company has assumed. This could happen, for example, if fewer people are now living in the household. Renters should also check whether their landlord is actually responsible for paying the water bill.
Households should work out what they can realistically afford and make an offer to their water company. The company should consider the customer's ability to pay and accept a realistic offer, although it can refuse if the proposed payments are not enough to clear the debt. Even if an offer is rejected, Citizens Advice says it is still worth paying what you can afford and keeping evidence of the payments. This could help demonstrate later that you have acted reasonably and in good faith to clear the debt.
Extra support and rules for water companies
The charity also advises customers to tell their water company if they are in vulnerable circumstances. This could include being disabled or having a long-term health condition, having reached State Pension age, not speaking or reading English well or being recently bereaved. Citizens Advice says water companies should provide extra support where someone's circumstances mean they need it.
Households facing action over unpaid bills should also check whether their water company has followed the correct procedures. In Wales, a water company should contact a customer twice before taking further action if a bill remains unpaid. If the customer has told the company their preferred method of contact, it should use this. Where there is more than one unpaid water bill, separate reminders should be sent for each bill. Water companies should also check whether customers qualify for help with their bills, explain different payment options and provide details of debt advice.
Anyone who believes their water company has failed to follow these rules can make a complaint. Citizens Advice says complaining could result in the problem being corrected and may also stop or delay court action.
Benefits and help with water bills
If an agreement cannot be reached, the water company will usually take the debt to court. There is also another route for recovering money from some people who receive benefits. A water company can ask the Department for Work and Pensions to deduct money from certain benefit payments to cover ongoing water bills and debt, often known as Water Direct or a third-party deduction. The DWP should write to the claimant explaining how much is being deducted, and the deductions cannot normally exceed a quarter of the benefit payment to cover water bills unless the claimant agrees to a higher amount.
People on low or no incomes, those receiving benefits, people living alone without a water meter and those who have reached State Pension age may be able to get help with their water bills. Citizens Advice recommends checking whether any assistance is available before allowing water arrears to build up. Its key message to households struggling with bills is not to bury their heads in the sand: contact the water company early, work out what you can afford and keep records of payments and correspondence.
