Martin Lewis Exposes Confusing Water Company Jargon
Martin Lewis, the money-saving expert, has highlighted a two-word phrase used by water companies that he says nobody understands, potentially preventing vulnerable customers from accessing financial help. During a Commons Public Accounts Committee hearing on June 29, Lewis stated that neither he nor any MP in the room knew what 'equivalised income' meant, despite it being a key criterion for social tariffs.
Lewis asked the committee: "Do you know what your equivalised income is? Because I don't know what my equivalised income is." An MP then inquired what the phrase meant, to which 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." He added: "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."
Definition and Deliberate Obfuscation?
According to a 2021 Office for National Statistics (ONS) document, equivalised income "refers to household income that has been recalculated to take into account differences in household size and composition. For example, households with many members are likely to need a higher income to achieve the same standard of living as households with fewer members." However, Lewis argued that this technical term is not widely understood.
An MP asked whether companies used the term deliberately to deter applications for help, suggesting: "Is that because they don't want to establish what it means because they don't want to offer up the potential help?" Lewis dismissed this as conspiracy, attributing the confusion to incompetence: "I tend to think it's because they're crap at communicating." The MP agreed, and Lewis added: "I tend to think this isn't conspiracy - it's just crap."
Call for Regulatory Action
Lewis proposed that the regulator should enforce clearer communication, saying: "I think that what the regulator could do is crack down on crapness, if you like." He drew parallels with councils incorrectly explaining carers' allowance on their websites. "Now there aren't as many water companies. So you could start by a communications audit of how these water companies are communicating the social tariffs."
He suggested a standardized approach: "Far better if they all had the same social tariff. We could have centralised really good communication. Then I could go on the telly and lots of other people could and tell the whole country exactly how it works without having to simply say 'check'. And then you check and it's equivalised income."
How to Get a Social Tariff
According to Citizens Advice, customers with no or low income, or those on benefits, may qualify for water bill assistance. Options include applying for a social tariff, having the supplier cap annual charges, or paying less for water used.
