Millions of households miss out on water discounts: how to save hundreds of pounds.

Significant savings on water bills

According to The Sun: Millions of households are missing out on the opportunity to save on their water bills. Many families who are eligible for discounts do not apply for the average discount of £194 per year.

According to Policy in Practice data, over 3.8 million households that could benefit from social water tariffs are not doing so, resulting in a staggering loss of £745 million.

This means that the average household eligible for reduced water tariffs could significantly reduce their bills by £194 per year.

Social tariffs for low-income families

Water companies offer various social tariffs designed to support low-income households, including those receiving Universal Credit or other benefits.

However, eligibility criteria and levels of support can differ depending on the water supplier.

For example, Thames Water, the largest supplier in the country, offers a 50% discount to households with an annual income below £17,005, or £21,749 for residents in London boroughs.

This program also helps families whose water bills exceed 5% of their total income, assisting over 13,000 households in nine London boroughs to save an average of £380.

Severn Trent has a Big Difference program that can reduce water bills by up to 90% for households with an income of less than £20,048 per year. United Utilities provides discounts or bill caps of up to £492 per year, including for those receiving pension credit.

Wessex Water also offers discounts of up to 80% for low-income households, regardless of whether they receive social support.

Other suppliers, such as Affinity Water, Yorkshire Water, and SES Water, have programs that can significantly reduce bills for families facing financial hardship.

Finding your water supplier

If you don't know who your water supplier is, the WaterUK website provides a simple tool by postcode to help you identify your supplier and explore available support programs.

You can also find out who your local water supplier is by visiting water.org.uk/customers/find-your-supplier.

How to reduce bills with a water meter

A water meter is a device that measures how much water you use and sends data to your supplier for more accurate readings and bills.

If you have a water meter, you only pay for the water you actually use, whereas without one you have a fixed rate often based on an estimated value of your home.

Typically, if there are more bedrooms in your house than people, you will be able to save with a water meter.

You can use the Consumer Council for Water's calculator at ccw.org.uk/save-money-and-water/water-meter-calculator to estimate potential savings.

Other support for water bills

If you have a water meter but cannot save water due to a large family or medical needs, you can apply for bill capitalisation through the WaterSure program.

Bill caps are limited to the average amount for your supplier, so savings can vary.

The Consumer Council for Water estimates that on average bills are reduced by £270 thanks to this program.

Some water companies also offer hardship assistance funds if you cannot pay your water bill.

At Thames Water, you can apply for the Customer Assistance Fund if you have a debt of over £120 and receive certain types of financial assistance.

Your supplier will work with you to agree on a manageable monthly payment considering your income and expenses, and the plan will remain in place for two years.

The payment covers your current costs and part of the debt without affecting your credit rating.

At United Utilities, you can apply for help online if you cannot afford your bill.

You may receive assistance with water and/or wastewater, and under certain circumstances appliances and beds may be available. One item is available per applicant.

Your water supplier may also offer a payment break if you temporarily need to reduce or stop payments.

At United Utilities, you can defer payment for water for an agreed term, and later spread the deferred payments over a longer period to help you get out of debt.

This program is available to customers with an annual income of less than £21,000 who receive certain types of financial assistance, as well as those who have experienced significant life events such as job loss or bereavement.

The South Staffs Water supplier allows a payment break of up to three months. Your eligibility will be assessed during the application process, and you can only apply for one break per year.

How to get free debt help

There are several organizations that can help you with debt for free.

• Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
• StepChange – 0800138 1111
• National Debtline – 0808 808 4000
• Debt Advice Foundation – 0800 043 4050

You can find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) at MoneyHelper.org.uk or Gov.UK.

Contact one of these organizations – do not be tempted to contact debt management firms.

They may promise to cancel part of your debt for a large upfront fee, but there are other options that do not require payment.