Looking for a lifeline: Modelling a single social tariff for water bills

 

Key findings

 

What older people are saying

 

Our recommendations

Download our full report

Being able to afford your water bills is essential to living a dignified life. In the past few years, we have been struck by the number of older people who have told us that they are concerned about managing their water and sewerage bills.

Support exists in the form of social tariffs for water bills, but there is currently a postcode lottery with each water company providing a different scheme. We have been calling on the UK Government to introduce a single social tariff for water bills in England and Wales. In this report, we make recommendations about how a single social tariff could work for older people living on a low income.

Our research

Our research investigates the levels of water poverty among older people, and how this is going to change over the next few years. It listens to older people’s views on how a single social tariff would work for them, and models the impact of different social tariffs for water bills on water poverty among pensioners.

The research includes:

  • nationally representative polling of older people across England and Wales
  • in-depth interviews with older people living on a low-to-modest income about their experiences managing their water bills
  • modelling analysis of water poverty trends to 2029/30 and how different social tariff options could lift older people out of water poverty.

Key findings

Nearly 750,000 pensioner households may currently be experiencing water poverty. This could rise to one million by 2029/30.

73% of older people in England support the introduction of a single, social tariff for water bills.

The four different formats for a social tariff we tested have different advantages and drawbacks, but all could be effective at lifting older people out of water poverty, and all have broad support from older people on low incomes.

What older people are saying

  • You know, I think, ‘Can I afford to keep going in the shower daily?’ No. I can’t. I can’t do that any more.

    Anonymous

  • The problem is you can’t switch providers like you can with gas and electric and so on. You have the water provider in your area and that’s it.”

    Martin, 68

  • It should be across the board. They should all be exactly the same. They should all be offering the same discount. It shouldn’t vary from area to area.

    Yvonne, 79

What is Independent Age calling for?

A single social tariff for water bills could be a vital lifeline for older people on a low income who feel like they are drowning under high household bills. It could end the current postcode lottery of support and ensure water affordability support is fair and consistent across England and Wales.

Independent Age recommends that the UK Government:

1
work with Ofwat, the Consumer Council for Water, water companies, charities and other stakeholders to introduce a single social tariff for water bills in England and Wales.
2
draw on existing research examining a single social tariff for water bills – including the modelling shared in this report – and commission additional modelling to inform the design of a single social tariff for water bills.
3
consider the most effective eligibility criteria to ensure that a single social tariff for water bills reaches those most in need of financial support.
4
consider ways to ensure high uptake of a single social tariff for water bills.
5
explore different methods for funding a single social tariff for water bills.
6
ensure that a single social tariff for water bills is designed to complement existing forms of support for people paying their water bills.
Older woman at home

Want to know more?

Our full report is available to read and download. Find out more about how a single social tariff for water bills could work for older people living on a low income.

 

You might also be interested in...

> Our blog exploring some of the key findings of this research

> Our report looking at the impact of high household costs on older people facing financial hardship: 'A constant struggle' – our report on household costs

>  Do you want to join Independent Age and help make the UK the best place to grow older? Join our Campaigns Network and we will keep you up to date on our activity.

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