A Martin Lewis enthusiast shared how she managed to slash £400 annually from her water bill. Jennifer, a reader of MoneySavingExpert.com, discovered her bill was set to exceed £800 each year. Following guidance from the MSE website, she explored a water social tariff option and discovered a potential 50% reduction.
Water social tariffs offer discounted rates for water and sewerage charges, typically catering to low-income individuals or benefit recipients. Eligibility criteria and support types vary among water companies, with an estimated 3.8 million households potentially missing out on these benefits.
In a recent MSE newsletter, Jennifer’s success story was highlighted. She expressed her gratitude after securing a 50% reduction on her water bill through a social tariff application, preventing the bill from reaching £800.
Various water companies offer different tariff schemes. Affinity Water, for example, caps bills at £143.80 annually or £95.80 for those receiving council tax support. Income thresholds for eligibility range from below £19,995 (excluding benefits) to specific benefit claims like Universal Credit or Pension Credit.
For instance, South East Water’s Big Difference tariff grants a 30% discount for households with incomes between £17,000 and £21,000, increasing to 50% for incomes below £17,000. Thames Water’s WaterHelp tariff provides a 50% discount if the water bill exceeds 5% of the net income.
Water bill increments in England and Wales are expected to rise by an average of £33 per year starting April, representing a 5.4% increase, surpassing the current inflation rate of 3.4%. Regulated by Ofwat, water companies were allowed a 36% increase in average bills over a five-year period until 2030 to fund a £104 billion infrastructure investment program.
While switching water companies is not an option, there are ways to save money, such as reducing water consumption. Simple habits like shortening shower times and turning off taps when not in use can contribute to significant savings. Additionally, obtaining water-saving devices and considering a water meter installation can further help in cutting costs.