380,000 more households turn to social tariffs to ease water bill pressures

Almost 380,000 more households received lower water bills through water companies’ social tariff schemes in 2025-26, according to annual figures from the Consumer Council for Water. (CCW).

The report shows water companies across England and Wales helped around 2.3 million customers through social tariffs, up 19% from the previous year. The value of this support also grew considerably, with customers who received help seeing an average annual bill reduction of £258, compared to £190 during the previous 12 months.

But with the average water and sewerage bill having risen by around 34% since April 2025, CCW has warned the growth in support, while welcome, is not targeted or consistent enough to ensure everyone who needs help receives it.

A study published by CCW in the summer estimated around 1.8 million households in England and Wales were living in water poverty, before the impact of the record water bill rises took hold. Water poverty is commonly defined as households spending more than 5% of their income after housing costs on water bills.

CCW has warned this number may not fall unless a new single social tariff for England and Wales is introduced to provide a stronger safety net.

This should replace the existing postcode lottery of different water company schemes, which sees the level of support and those eligible for help vary considerably across the country. The latest data shows the average bill reductions provided through the main water and sewerage companies’ existing social tariff schemes ranged from £159 to £474 a year.

Mike Keil, Chief Executive of the Consumer Council for Water, said “Support from water companies is rising but so are water bills and the commitment water companies in England made to end water poverty by 2030 now looks like it has evaporated.

“It is unfair and unsustainable to have a postcode lottery approach to helping customers who cannot afford their water bill. A national single social tariff for water would provide peace of mind to households at the sharp end of cost-of-living pressures.”