Push for nationwide water tariff in the UK
Charity group Citizens Advice has thrown its support behind the proposal for a single social tariff for water usage in the UK.
The proposal was mooted in a new report by Parliament’s Environment, Food and Rural Affairs Committee. The report follows the Committee’s evidence sessions with the leadership of ten of England and Wales’ major water and sewerage companies in 2025.
Water companies in the UK currently offer social tariffs, providing discounts to consumers on low incomes. However, these social tariffs are dependent on both the water firms and where people live, creating huge gaps in how much consumers pay in different regions.
“A single social tariff could be a real game-changer for people struggling with rising water bills, so we’re glad to see the select committee highlight this,” said Tom MacInnes (Director of Policy at Citizens Advice).
“Right now, those on the sharp end of bills face a postcode lottery for support. Even when water social tariffs are available, more than two-fifths (42%) of those likely to be eligible aren’t aware they exist.
“Change can’t come soon enough, with water poverty set to almost double among Citizens Advice debt clients unless extra support gets to those who need it. For a single social tariff to really work as a safety net, low-income households must be automatically enrolled.”
A change in how water is paid for
The water price review process must be reformed or replaced to reflect the long-term investment and performance challenges faced by the sector and the priorities of the public, the report states.
This must be coupled with reform of the regulatory processes that determine the contents of companies’ business plans, which have clearly failed in the past to tackle environmental issues, such as storm overflows or long-term resilience.
These reforms may entail higher bills, but protections can be put in place to protect the most vulnerable, including through the swift introduction of a single social tariff, the committee said.
The report also urges the Water Commission to consider a variety of models of corporate ownership, which could offer a better culture of responsible leadership.
MPs want the Commission to determine how regulators can better vet or veto potential owners of water companies to prevent bad actors from running critical national infrastructure.
The report also notes that bonuses totalling millions of pounds have been repeatedly paid to senior executives over many years, despite poor performance, which seriously diminishes trust and may fail to incentivise improvement.
MPs want the commission to consider reforms to ensure that the right people are put into senior positions, as they call for greater oversight from Ofwat before appointments are made and bonuses are paid, as well as clearer statutory expectations on the criteria for bonuses.
