Could water bills be about to go down?

Water bills could come down by £240m by 2030 under new plans from industry regulator Ofwat.

The watchdog has proposed hitting water companies that don’t meet environmental and customer service targets with financial penalties.

But instead of simply paying a fine, the money would be returned to customers in the form of lower bills.

When will this happen?

Ofwat will make a final decision on the proposals by 15 December, and if they’re approved, households could see the impact in their bills from 1 April next year.

However, the watchdog stresses that its figures are only an estimate and “do not mean every household will see the same change”.

“Changes to bills are affected by a range of factors and the effect will vary by company and customer type,” Ofwat added.

Government keen to overhaul water system

The announcement comes just weeks after Andy Burnham described water as “a symbol of what has gone wrong with Britain”, and “a service where the shareholders never lose and the public never win”.

Speaking in his keynote speech at the Labour Party conference, the prime minister confirmed that the ban on public ownership of water companies will be repealed.

That doesn’t mean any water companies are going to be nationalised right now, but it opens the door in this direction.

And mayors will be given more powers to hold water companies to account.

What can I do if I’m struggling with water bills?

If you’re finding it hard to keep up with your water bills, contact your water company as soon as possible, ideally before you miss a payment rather than afterwards.

Every water company runs a social tariff, which is a cheaper bill for customers on a low income. 

Almost two million households were on one last year and their bills came down by an average of £190. 

Each company sets its own rules about who qualifies, so ask yours for more information.

There's also WaterSure, which caps your bill at the average for your area if you're on a meter, claim certain benefits, and either have a large family or a medical condition that means you use more water, such as kidney disease or a skin condition that needs frequent washing. 

In addition, lots of water companies offer payment breaks, and some run matching schemes where they take a pound off your debt for every pound you pay.

Get debt advice

If you’re behind on your water bills, there’s a good chance you’re struggling to keep up with other bills too. 

In that case, it really helps to look at everything together rather than tackling one debt at a time.

We can go through your income and outgoings with you, check if you're missing out on any benefits or support you're entitled to, and talk you through the options for dealing with what you owe. 

Speak to us and we'll work out where you stand.

Can your water be cut off?

No, water companies in England and Wales aren't allowed to disconnect a household's supply over an unpaid bill.

But the debt doesn't go away on its own. 

Your water company can pass the account to a debt collection agency, and it can take you to court. 

If a judge orders you to pay and you don't, that goes on your credit record and stays there for six years, which can make it harder to get a mortgage, a phone contract or a loan.

Find out more about what to do about water arrears here.