Government drops £50 water bill contributions

Customers of South West Water (SWW) will see their bills increase after the government removed its £50 contribution.

The yearly taxpayer funded subsidy was introduced in 2013 to help people in the region where water bills were far in excess of the national average for many years.

SWW said the contribution has been an "important step to ensure bills remained manageable" and it will be working with customers when the change comes into effect on 1 April 2025.

Emma Hardy, Minister for Water and Flooding, said the government is "taking difficult decisions" to restore financial stability, and the difference between water bills in the South West and other regions had decreased.

She said the subsidy was first introduced to enable SWW to invest in the region’s infrastructure to meet environmental and water quality standards.

Hardy said this was no longer the case and the government was "taking difficult decisions on tax, welfare and spending... to address a £22 billion black hole".

"Over the last decade the difference between water bills in the South West region and others has decreased," she said.

"Over the next price review period Ofwat’s latest projections are that SWW customers will have similar bills to those in other regions."

She added: "The government is committed to taking action to address water poverty and help vulnerable customers with their water bills.

"All water companies have measures in place for people who struggle to pay for their water and wastewater services, including measures such as WaterSure, social tariffs, payment breaks and holidays, and debt management support."

The announcement comes as Ofwat is expected to announce price increases in December which could see bills increase by 21% over the next five years

Cath Jones, head of company engagement for the Consumer Council for Water said: “We know this will really worry households in the south west and particularly those who are struggling financially.

"We understand that this rebate is now much harder to justify given that average bills have reached a similar level for customers in some other regions."

She added: "What is now needed is better targeted support for people who are struggling to afford their bills, which is why we’ve been calling for a single social tariff to lift everyone out of water poverty."

A SWW spokesperson said: "The £50 contribution has been an important step to ensure bills remain manageable for customers who help fund this essential coastal protection for the entire country.

"We have driven efficiencies to drive down bill levels, with bills lower today than they were 10 years ago.

"We will be working with our customers to help them understand what it means for them and how we can help.

"We're here for our customers, with a £200m support package, doubling down on our pledge to eradicate water poverty by 2030."

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