New scheme to automatically cut bills by £300 for tens of thousands of low-income households – check if you’re eligible

THAMES Water has launched what it claims is a first-of-its-kind scheme to automatically cut water bills for low-income households.

The UK’s largest water firm – with around 16million customers – is identifying those living in 17 London boroughs who need financial support in order to automatically enrol them on its social tariff schemes.

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Those identified as needing assistance do not need to apply to be included in the scheme, which will automatically cut their bills.

Thames Water said the initiative will save around 33,000 struggling households more than £300 a year, or more than £10million a year in total.

The firm said it wanted to ensure customers in financial difficulty automatically received the assistance they were entitled to, even if they were unaware of their eligibility.

It follows a successful pilot in Wandsworth and Richmond upon Thames earlier this year.

Under data-sharing agreements, Thames Water is working with the borough councils and the Policy in Practice social data platform to identify customers whose water bills exceed 5% of their net income.

They are then automatically enrolled on its WaterHelp scheme, which cuts bills by 50%.

The scheme is also identifying other customers who should be on its WaterSure social tariff, or who are eligible for the Extra Support Scheme assistance of up to £700.

Customers do not need to be in arrears to be eligible for financial assistance.

However, Thames Water said it was identifying households who are in arrears for automatic enrolment into the WaterHelp scheme.

How do other water companies help customers with their bills?

Yorkshire Water dishes out discounts of up to £270 for some customers.

Households with incomes below £20,000, or £26,000 with dependants, are eligible.

There’s also a debt support scheme for customers with arrears between £50 and £1,500 and at least one priority debt.

Wessex Water bill payers can access payment breaks, flexible payment plans and debt support schemes.

The firm also provides discounts for care leavers, low income pensioners and potentially anyone falling behind on payments. 

Anglian Water offers discounts of up to 50%, including for pensioners and a variety of tariffs depending on your personal circumstances.

The company also offers payment breaks and helps getting bills paid directly from your benefits with Water Direct.

Northumbrian Water customers can get flexible payment plans and payment breaks.

Financial support schemes can include low income discounts, capped bills and paying bills directly from benefits. 

People earning £26,000 or less could get low income discounts of up to 40%. 

South West Water encourages customers to fill out an in-depth form so it can point them to all available support. 

United Utilities offers discounts for pensioners, households on low income and people suffering financial hardship.

There is also a Back on Track service for people worried about falling behind on their bills. 

Southern Water can hand out customer hardship funds, including a one-off 50% bill reduction, a £2,000 debt write-off and appliance and furniture grants worth £1,000.

There are also a range of discounts for low income households, families with three or more children and people falling behind on payments.

Severn Trent Water offers discounts of up to £390 to anyone earning less than £23,492 a year.

The firm can also provide free advice, essential items, plus money off for single-person households, young families and people with medical conditions. 

What has Thames Water said?

Nina White, director of income at Thames Water, said the firm was determined to “deliver life’s essential service” to customers “struggling to pay their bills”.

She said: “This partnership with the local authorities and Policy in Practice allows us to reach thousands of customers who previously may have been unaware that our WaterHelp scheme can help them.

“We’re looking forward to the rollout extending to more boroughs across London, with customers enrolled on the scheme automatically if eligible.”

Wandsworth Council leader Simon Hogg said: “It’s important that residents receive the help they are entitled to.

“Over 1,000 households in Wandsworth will now automatically see cheaper water bills, offering a crucial lifeline to those facing economic hardship and struggling with rising bills.”

Earlier this month, a group of Thames Water lenders set out plans on how they would deliver £20.5 billion of investment to turn around the troubled supplier’s performance as they look to secure a rescue of the firm.

The supplier’s main creditors – led by a team of 15 investors called the London & Valley Water consortium – have pledged to “fix the foundations” of Thames Water with the mammoth spending proposal put forward to regulator Ofwat.

They are promising an increased focus on improving Thames Water’s poor pollution performance and record on leaks, with targets to cut sewage spills by at least 135 a year.

Thames Water is on the brink of nationalisation as it struggles under a mountain of debts.