A supporter of Martin Lewis shared how she managed to reduce her annual water bill by £400. Jennifer, a reader of MoneySavingExpert.com, was facing a potential increase in her yearly water bill to over £800. However, after following advice from the MSE website, she explored a water social tariff option and discovered she could lower her bill by 50%.
A water social tariff provides discounted rates for water and sewerage charges, typically targeting individuals with low incomes or those receiving benefits. Eligibility criteria and available support differ among water companies, with an estimated 3.8 million households potentially missing out on these benefits.
Jennifer’s success story was featured in the latest MSE newsletter. She expressed her surprise at the high initial bill and her gratitude for learning about the social tariff through MSE, which resulted in a significant reduction. For instance, Affinity Water offers a capped annual water bill of £143.80 or £95.80 for those receiving council tax support.
To qualify for social tariffs, individuals must have an income below £19,995 (excluding benefits) or be recipients of certain benefits like Universal Credit or Pension Credit. Companies such as South East Water provide a Big Difference tariff, granting a 30% discount for households with incomes between £17,000 and £21,000. Additionally, households earning less than £17,000 can receive a 50% reduction.
Water bills in England and Wales are set to increase by an average of £33 annually starting this April, representing a 5.4% rise higher than the current inflation rate of 3.4%. Water companies were authorized by regulator Ofwat to raise average bills by 36% until 2030 to fund a £104 billion investment program for infrastructure and environmental protection.
While switching water providers is not an option, there are ways to save money. Simple measures like reducing water usage can lead to noticeable savings. Installing water-saving devices, like regulated flow shower heads, and considering a water meter can also help cut costs. Martin Lewis recommends households with more bedrooms than occupants to opt for a water meter as it could lead to savings.