Shadow water minister Gavin Shuker said the coalition’s approach was “simply not good enough”, as he addressed a forum at Leeds University this morning.
Government has pledged to pay £50 towards each household bill in the South West, where charges are highest, and expects companies to assist vulnerable customers through social tariffs.
Shuker said: “We know that more and more people will find themselves in water poverty – paying more than 3% of their income on water. But ministers have failed to bring forward any plans to tackle high bills apart from in one part of the country.”
He argued that driving down bad debt in the sector, which currently adds an average £15 a year to household bills, could free up cash for targeted support.
“Right now, this country is facing a cost of living crisis,” he added. “Household budgets are stretched, and more and more individuals will be forced into ‘water poverty’. Labour rejects the idea that Government can’t do anything to help.”
“We think it’s unfair to extend a situation where a postcode lottery dictates whether you may or may not be able to afford your water bill.”
The environment department (Defra) is consulting on strategies to tackle bad debt by getting landlords to provide tenant details. It is considering two options: one which would make landlords liable for the debt if they failed to provide information and a “voluntary” option.
Water minister Richard Benyon has indicated he favours the latter, which industry watchers say simply won’t work.
Defra completed a consultation last month on guidance for water companies on setting social tariffs. It proposed up to 1.5 per cent (£5.50) of the average household bill would be a reasonable amount for customers not eligible for support to contribute to assist the needy.
The government stressed that it would be for water companies to design tariffs to suit local circumstances. Not all firms welcome this social policy responsibility.