swordpress

MILLIONS of water customers are set to get up to £2,000 in compensation from today.

New rules set by the Department for Environment, Food and Rural Affairs (Defra) now require water companies to pay up to ten times more in automatic compensation.

Compensation rates have remained unchanged since the early 2000s – until now

Defra said the changes, originally proposed in December 2024, will make sure people are fairly reimbursed for supply problems and poor service.

Automatic compensation is usually given to homes and businesses affected by problems like supply interruptions, sewer flooding, or low water pressure.

Compensation rates have remained unchanged since the early 2000s – until now.

Meanwhile, payouts for consistent low water pressure will jump to up to £250, a big increase from the old rate of just £25.

Compensation for when water suppliers fail to turn up to appointments will rise from £20 to £50.

The government is also working with water companies to expand the list of circumstances that will trigger compensation payments.

Compensation for when customers are asked to boil their water due to contaminated supply will come into force later this year. 

Environment secretary Steve Reed said:  “Too many water companies are letting down their customers – with leaking pipes, poor water supply and low water pressure.  

“The Government is holding water companies to account by making them put money back into people’s pockets when they fail their customers.”

The Consumer Council for Water (CCW) and Ofwat support the changes.

They believe higher payouts and broader rules will push water companies to provide better services.

Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “Customers expect to be treated fairly when their water company lets them down, so we’re delighted the Government has moved at pace to strengthen service standards.”

“This should give people peace of mind they now have far stronger protection from a much broader range of water company service failures – from the slow installation of water meters to the mishandling of debt recovery.

“As well as bolstering payments for thousands of customers, these changes mark an important step towards restoring trust in the water sector which is at an all-time low.”

What compensation is increasing?

COMPENSATION for several common issues has significantly increased:

Low water pressure: Was £25. Now £250
Internal sewer flooding: Was £1,000. Now £2,000
Complaints not actioned: Was £20. Now £40
Supply interruptions: Now £50 for each 12 hour period
Failure to pay compensation: Was £20. Now £40

These changes are part of a bigger government plan to improve the water industry.

It includes tougher rules and possible criminal charges for water company bosses who break the law.

At the same time, it is also banning unfair bonuses for executives at six polluting water companies.

A record 81 criminal investigations into sewage pollution have been launched to tackle environmental damage.

Plus, £104billion from private sector investment is being secured to upgrade old sewage pipes and reduce sewage by nearly half by 2030.

The average annual water and wastewater bill increased by £123 in April, taking it from £480 to £603.

Last month, The Sun revealed how millions of households are unable to get help with their bills through a vital scheme due to a key loophole.

What water bill support is available?

IT’S always worth checking if you qualify for a discount or extra support to help pay your water bill.

Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff – up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you’re on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.