Around 2 million struggling households are receiving lower water bills through water companies’ social tariff schemes to combat rising prices, according to new figures released today by the Consumer Council for Water (CCW).

CCW’s annual Water Mark report shows water companies across England and Wales provided help to more than 1.96 million customers through social tariff schemes in 2024-25 – a rise of 22%. These customers' bills were reduced by an average of £190.

However, CCW says the welcome growth in financial support was still not enough to prevent an additional 199,000 households falling into arrears over the same period – taking the total number of customers in debt to their water company to around 2.85 million.

And this was before household customers felt the impact of April’s record rise in charges, which increased the average water and sewerage bill by around 26% – or £123.

CCW has warned more households could sink into water debt, unless a new single social tariff for England and Wales is introduced to provide consistent and better targeted financial support.

The consumer watchdog says this could 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’ social tariff schemes ranged from £120 to £314 a year.

Mike Keil, Chief Executive of the Consumer Council for Water, said:

“Many customers understand bills need to rise to help fund more reliable services and clean up our rivers, lakes and seas, but the safety net for people who cannot afford these increases is not strong enough.”

“We want to see fairer and more consistent help through the creation of a single social tariff to ensure financial support flows to those that need it most.”

More than 260,800 metered households, in receipt of income-related benefits, secured an average bill reduction of £325 through the WaterSure bill-capping scheme. To be eligible, customers must also either have a large family or a member of the household with a medical condition which requires a lot of water use.

Almost 65% of households in England and Wales now have a water meter, according to CCW’s latest Water Mark data. However, there remain other customers that could benefit from making the switch - CCW says while not everyone will be better off with a meter some households find they can save hundreds of pounds.

Click here to access CCW's annual Water Mark company performance data 2025