Scheme to cut water bills for low income homes

People who pay more than 5% of their income on water bills will get a discount

Thames Water has launched what it claims to be a first-of-its-kind scheme to cut water bills for low income households in London.

People living in 17 boroughs in the capital who need financial support will be automatically enrolled on the water company's social tariff scheme without having to go through the application process.

Under data-sharing agreements, Thames Water said it was working with councils and the Policy in Practice social data platform to identify customers whose water bills exceed 5% of their net income. Eligible households will be signed up to the WaterHelp scheme, which cuts bills by 50%.

It follows a pilot in Wandsworth and Richmond boroughs earlier this year.

Thames Water said the initiative would save around 33,000 struggling households more than £300 a year, or more than £10m a year in total.

The water company said it was also identifying other customers who should be on its WaterSure social tariff, or who are eligible for the extra support scheme assistance of up to £700.

Nina White, director of income at Thames Water, said: "Our purpose is to deliver life's essential service and we are determined to support those customers who are struggling to pay their bills."

Water bills are set to rise by 30% in the next five years.

The scheme is being rolled out in: Richmond, Camden, Wandsworth, Hackney, Tower Hamlets, Hammersmith & Fulham, Haringey, Enfield, Lambeth, Kensington & Chelsea, Islington, Westminster, Lewisham, Ealing, Brent, Greenwich and Southwark.

Thames Water said the pilot in Wandsworth and Richmond saw more than 1,800 households receive a total of £650,000 in financial support.

Simon Hogg, the Labour leader of Wandsworth Council, said: "It's important that residents receive the help they are entitled to.

"Over 1,000 households in Wandsworth will now automatically see cheaper water bills, offering a crucial lifeline to those facing economic hardship and struggling with rising bills."

Thames Water, which supplies most of Greater London, Luton, the Thames Valley, Surrey, Gloucestershire and some other parts of England, is on the brink of nationalisation as it struggles under a mountain of debts.

Earlier this month, a group of Thames Water lenders set out plans on how they would deliver £20.5bn in investment to turn around the troubled supplier's performance as they look to secure a rescue of the firm.

In July an independent review said water bills have to rise steeply to make up for years of under-investment - and pressure to keep household prices low for years has led to bills being expected to increase by 30% by 2030.