wrans/answers2025-11-19 conversation_171
Source: hansard.parliament.uk (2025-11-19)

UK Parliament Hansard data: wrans/answers2025-11-19 conversation_171

Dr Al Pinkerton:To ask the Secretary of State for Environment, Food and Rural Affairs, whether her Department has made an assessment of the adequacy of financial support available to customers experiencing water bill debt in Surrey Heath constituency. \p Emma Hardy: It is Ofwat's responsibility to independently scrutinise water company business plans and ensure that the prices water companies charge their customers are fair and proportionate. The price controls set as part of Price Review 2024 (PR24) came into effect on 01 April 2025.

As part of this approach companies are required to publish their charges before each financial year in their Charges Scheme. Ofwat sets charging rules that companies must follow when developing their charging schemes and differences in charges for different services need to reflect differences in costs. Their licences also prohibit companies from setting charges which show undue discrimination or preference. Ofwat does not approve companies’ charges, but they have the powers to intervene if they are or could be breaching the rules or licence conditions.

Water companies must also comply with Ofwat's Paying Fair principles which includes companies needing to make information about services and bills more understandable for all customers – and make it available in a way that best meets their needs.

The Government has already announced that funding for vital infrastructure investment is ringfenced and can only be spent on upgrades benefiting customers and the environment. When money for investment is not spent, companies will be required to refund customers via lower water bills, with money never allowed to be diverted for bonuses, dividends or salary increases.

We understand the financial pressures hardworking families are currently facing and we are pushing the sector to ensure support is available for vulnerable customers who are struggling to pay their bills; water companies must ensure support is available for vulnerable customers who are struggling to pay their bills. Moreover, the Government expects industry to keep the current support schemes under review to ensure that vulnerable customers across the country are supported.

We also expect all water companies to put appropriate support in place for customers struggling to pay their bills and to proactively engage with their customers to ensure they know what support schemes are available and how to use them if they need help. All companies have measures in place such as WaterSure, social tariffs, payment breaks and holidays, and debt management support.

The Government has acted decisively by consulting on reforms to WaterSure – the statutory scheme which caps bills for low-income customers with necessary higher water usage and by introducing new and increased compensation for companies to pay customers in the event of unforeseen disruption to supply.

Before the end of the year, the Government will publish a Water White Paper bringing forward root and branch reform to secure better outcomes for customers, investors and the environment and restore trust and accountability. Together with the building blocks the Government has already put in place, this will mark the most fundamental reset to our water system in a generation.