Central England and mid-Wales water provider Severn Trent is setting aside £30 million to help some of its poorest customers.
With inflation running at 9 per cent and rising, and many households finding themselves desperately stretched, the utility firm said it wants to help another 100,000 people get up to 90 per cent off their water bill. It says it is the first water company in the UK to offer support on this scale.
It says it is an addition to its Big Difference Scheme and on top of the 215,000 customers it already helps who have household incomes below £16,385.
Severn Trent chief executive Liv Garfield said: “As cost of living pressures continue to rise, we’re acting now to support people struggling to pay their bills.
“Our customers have the second lowest bill in the UK, at around £1 per day, but we know that for some, paying this remains a challenge.
“I’m pleased to announce a commitment today to help thousands more people on low incomes to reduce their water bill by up to 90 per cent.”
The Consumer Council for Water says 6 per cent of people in the Midlands are classed as being in water poverty – spending more than 5 per cent of their total income (after household costs) on their water bill. Across England and Wales the figure is around 1.5 million households.
Emma Clancy, chief executive of the Consumer Council for Water (CCW), said: “No one should have to worry about being to afford their water bill so we’re delighted to see Severn Trent putting its hand in its own pocket to help thousands more low-income households at a time of real crisis for many people.
“Our independent review of water affordability set out a clear path to ending people’s worries over water bills and with the support of companies like Severn Trent and the wider water sector we can ensure people struggling to pay always get the help they need, when they need it most.”
Severn Trent said the pledge complemented its other financial customer support schemes, which it said have helped more than 627,500 people pay their bills.
Ofwat chief executive David Black said: "No one should have to choose between paying for water and paying for food.
“We're pleased to see Severn Trent recognising the increased pressure facing customers and acting now to help those struggling in water poverty.
“Other companies should look to do more to respond to the cost of living worries and we will be issuing new guidelines to signal the increased expectations of Ofwat and the public."
CBI Midlands director Rick Blackmore said: “The rising cost of living is having an acute impact on families and businesses across the country, and support for those most in need is essential and welcome.
“Responsible businesses have gone to great lengths to support their most vulnerable customers, just as they have throughout the difficulties of the past two years. Severn Trent’s support fund for low-income families is a great example of a business playing their part to protect people in need during times of crisis.”
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