Martin Lewis has warned that millions of UK households are missing out on cheaper water bills through social tariffs, costing them an average of £194 a year. The money-saving expert described the situation as 'outrageous' during a select committee session last week.
According to research by Policy in Practice, 3.8 million qualifying households are not receiving a water social tariff, leaving £745 million unclaimed each year. This amounts to an average loss of £194 per household, simply because people are unaware of the help available or find the application process too difficult.
Citizens Advice Criticises Lack of Awareness
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.' She highlighted a lack of standardisation as a major barrier, noting that a single social tariff recommended by the Cunliffe Independent Water Commission was not adopted by the government, calling it 'a really big missed opportunity.'
Confusing Eligibility Criteria
Mr Lewis also criticised the complexity of eligibility criteria. He asked the public accounts committee: '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.' He argued that if even MPs do not understand the term, it is not a good way to communicate with vulnerable people.
How to Apply for a Social Tariff
Every water provider in England and Wales runs a social tariff scheme. Customers should contact their supplier to ask about their offering, as eligibility and discounts vary. The Consumer Council for Water provides details of what each company offers. If struggling to pay, suppliers cannot cut off water supply and must take court action to recover debt. Many suppliers also offer hardship funds and payment assistance.
Eligibility for Social Tariffs
According to Citizens Advice, you may qualify for help if you have no earnings or limited income, or if you claim benefits. Options include applying for a reduced rate (social tariff), having your water bill capped, or paying a lower rate for water consumed. Visit the Consumer Council for Water website to check eligibility and apply.
