Ofwat has published its latest cost of living report on water customers’ experiences in England and Wales– the fifth in a series which focuses on how bill payers are managing financially and the extent to which they are struggling with daily costs.
Introducing the report, Lynn Parker, Senior Director Casework, Enforcement and Customers at Ofwat said it shows a mixed picture.
On the one hand, the proportion of customers who report having struggled over the last year with household bills has increased slightly (53%, up from 50%). There has also been a small increase in the proportion who report currently struggling with their water bills (20%, up from 18%).
However, according to Lynn Parker there are some positive signs that water companies are responding to this challenge. There has been a small increase in awareness of water companies providing financial support (31%, up from 28%) and the proportion of bill payers who report having received financial support for their water bill (9%, up from 6%).
Bill payers were asked how concerned they would be about monthly increases in their household costs. Nearly three in ten (28%) bill payers reported they would be concerned if there was a £5 monthly increase in their household costs. This rises to 54% of those currently struggling with their water bill. Those in London were more likely than those in other areas to report that they would be concerned (36%).
The report says that age differences continue to be significant and have widened since wave four (October 2023). The proportion of 18-34s and 35-54s who struggle ‘sometimes’ or more often increased by five percentage points and six percentage points respectively, while the proportion of those aged 55 and over who struggled fell by one percentage point.
The proportion of people who ‘never’ struggled with household bills over the previous year fell significantly after late 2021. At that time, 45% of bill payers reported ‘never’ struggling. This now stands at 28%. Only 7% of 18-34s reported ‘never’ struggling, compared to 17% of 35-54s and 48% of over 55s.
Younger people were also more than twice as likely to ask family or friends to borrow money (53%) than those aged 55 or over (24%). Younger people were also more likely than older people to take a short term loan (19% for 18-34s compared to 8% for 55+) and to take out more on an existing loan (15%, compared to 3% for 55+).
The findings in the report are taken from an online survey by Savanta conducted between 18 and 28 March 2024. This includes:
- A survey of 2,351 water bill payers in England and Wales. The sample includes 1,963 respondents in England and 388 water bill payers in Wales. The data was weighted to be nationally representative by age, gender and region for England, and age and gender for Wales.
- A booster sample of 316 water bill payers from ethnic minority communities in England and Wales
CCW - “Millions of people will feel upset and anxious at the prospect of water bill rises"
Commenting earlier this month on Ofwat’s draft determinations for water companies across England and Wales allowing them to increase customer bills on average by £19 a year over the next five years, Mike Keil, Chief Executive of the Consumer Council for Water (CCW), said:
“Millions of people will feel upset and anxious at the prospect of these water bill rises and question the fairness of them given some water companies’ track record of failure and poor service.
“Customers understand investment is urgently needed but they need reassurance that every pound of their money is going to be well spent. Trust in water companies has never been lower and that won’t change until people see and experience a difference – whether that’s having the confidence to swim at their favourite beach or receiving help if they are struggling to pay their bill.
“We estimate about 2 million households in England and Wales currently cannot afford their water bill and while the increase in financial assistance is welcome it falls short of what is needed. Over the summer we’ll be carrying out research with customers of every water company to gauge whether they feel the regulator’s proposals are affordable and deliver what people want. We expect Ofwat to listen and act on what customers tell us.”
Click here to download the report
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