Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, pursuant to the Answer from the Parliamentary Under-Secretary of State for Water, Forestry, Rural Affairs and Water Management, Official Report, column 987, on water companies: social tariffs, what discussions she has had with (a) water companies and (b) other government departments on a scheme of social tariffs that is consistent across England; and if she will make a statement.

There are currently eight water companies across England and Wales that offer a social tariff to help their customers with affordability. The companies are: Affinity Water, Anglian Water, Bristol Water, Dŵr Cymru (Welsh Water), South West Water, Sutton & East Surrey Water, Thames Water and Wessex Water. A further six companies will be introducing social tariffs from April 2015: Northumbrian Water, Severn Trent Water, South East Water, Southern Water, United Utilities and Yorkshire Water. The remaining four water companies either intend to have a social tariff in place by April 2016 or are currently consulting with their customers. The existing social tariffs currently support over 22,000 customers and are just one aspect of a much wider support package that all water companies provide, including WaterSure, customer assistance funds, support tariffs, debt advice and support with water efficiency.

The Government has published guidance to the water companies and Ofwat on the introduction of social tariffs, which makes it clear that the companies are best placed to take decisions around the design of social tariffs. In consultation with their customers, each water company sets the eligibility for their own social tariff scheme, taking account of local circumstances and the needs of their customers. Many are also working with third sector organisations (Citizens Advice Bureaux, StepChange, etc.) to better target those customers that would benefit from support. All social tariffs must also be approved by Ofwat, within the context of each water companies’ individual charging schemes.

Defra officials are holding discussions between officials from the Department for Work and Pensions and the water industry, to explore the options around using benefits data matching to improve targeting and administration of social tariffs.

Through our guidance we have set a framework that is consistent across England, while giving the water companies the flexibility to respond to local needs and circumstances. A mandatory social tariff is a blunt instrument, not least because of the many variations across the regions, and further regulations would be an unnecessary burden. Shortly, almost all water companies will have social tariff schemes, developed in consultation with their customers, to ensure they are tailored to meet local needs and are acceptable to the people who will have to pay for them.