Ministers and under-fire water companies are under renewed pressure to implement a single social tariff to support vulnerable households. The current system in England and Wales sees each water company offering its own social tariffs, with varying levels of discounts for struggling consumers. The Consumer Council for Water (CCW) has called for a fairer and more consistent scheme, funded by all water companies, to provide greater support to those in need. The introduction of a standardized scheme has the potential to benefit up to 2 million households struggling with water bills. The CCW argues that this would address water poverty, defined as when individuals spend 5% or more of their household income on water bills after housing costs. Water companies will submit their business plans for 2025 to 2030 to the industry regulator, Ofwat, next month. The potential introduction of a single social tariff before the price review is now unlikely as the government has cooled on the idea. Some companies are resistant to a uniform social tariff as it would mean subsidizing companies in other regions that require larger investments. The water industry is currently facing scrutiny over issues such as sewage dumping, leaks, executive pay, and debt levels.
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