Money Saving Expert Martin Lewis has warned that millions of UK households could be getting cheaper bills than they are
Millions of people are missing out on significant extra help with their bills in the UK. It is costing affected homes an average of £194 a year – and Martin Lewis has branded the situation as ‘outrageous’.
Citizens Advice and the money-saving expert have both criticised the existing system for something called social tariffs that operate in the UK. An estimated 3.8 million UK households could be getting lower water bills with them.
Experts say £745 million is going unclaimed each year as a result. And that’s an average loss of nearly £200 per household.
Mr Lewis says that many Brits could be slashing their water bills if the regulations were made clearer. Social tariffs provide a discounted rate on your water charges. If you’re claiming particular benefits or surviving on a modest income, you might qualify.
Yet he told MPs during a select committee session last week that “3.8 million households are missing out on water social tariffs, which is just outrageous”. He argued that firms aren’t doing nearly enough to publicise what’s available – resulting in far too many people not accessing assistance they’re due.
He was citing statistics gathered by Policy in Practice. Their research revealed that 3.8 million qualifying households aren’t receiving a water social tariff.
They claim this leaves “£745 million unclaimed each year, an average loss of £194 per household, simply because people are unaware of the help available or find the application process too difficult.”
Can I get a social tariff from my water company?
Every water provider in England and Wales runs a social tariff scheme. Contact your provider and ask about their offering. What’s on offer and eligibility criteria vary.
Find your water company and details of what they offer at the Consumer Council for Water. If you’re struggling to pay your bills, your supplier is not allowed to cut off your water supply. They must take court action to recover any outstanding debt.
If you’re experiencing difficulties with your water bill, it’s strongly recommended that you contact your supplier as soon as possible. The majority of suppliers can offer guidance and assistance to help you manage payments.
They may also run a hardship fund that could help towards your water bills.
Citizens Advice slams social tariff situation in UK
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.
“A really big problem is a lack of standardisation, as Martin said. It makes it really difficult for people to work out what they are entitled to and to claim it.
“In water, there was a critical opportunity to deal with standardisation. A lot of organisations were calling for a single social tariff, and the Cunliffe Independent Water Commission also recommended that, but the Government decided not to move ahead with it at this stage.
“I think that was a really big missed opportunity.” On the issue of social tariffs being hard to access, Mr Lewis also said at the meeting of the public accounts committee: “Do you know what your equivalised income is?
“Because I don’t know what my equivalised income is. But that that’s what you’re asked if you have an equivalised income. I suspect none of us in the room know what our equivalised income is.”
“What does it mean?” asked an MP on the committee.
Mr 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. The point I’m making is, well, if none of 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.”
Am I eligible for a social tariff?
According to Citizens Advice, you could receive help with water bills if you have no earnings or a limited income, or if you are claiming benefits. You may be able to:
- apply to your water company for a reduced rate – these are sometimes referred to as ‘social tariffs’.
- get your water provider to cap the maximum amount you’ll need to pay for water each year.
- pay a lower rate for the water you consume.
Visit the Consumer Council for Water website to see if you could eligible for help you are currently missing out on.
