The “sweeping reforms” form part of Labour’s proposed National Affordability Scheme which will reform water company licences so that the social tariffs cannot be paid for via increases on other customers’ bills.
The opposition party claims that this would be funded by their work with the water companies to recover bad debt, including forcing landlords to pass on details of tenants.
Labour’s reforms would also give the regulator new powers to modify company licenses to cut bills, ensure companies behave more responsibly, and retain sufficient funds to enable them to invest in enhanced environmental standards and consumer support.
The shadow environment secretary Maria Eagle, due to speak at a debt advice centre later today, will say: “It’s time for a new deal with the water companies.
“Labour will reform the water industry, creating a national affordability scheme to support those customers who are struggling most with their bills.
“We’ll also give the regulator tough new powers to cut bills and ensure that water companies play by the rules and put consumers first.”
Responding to Labour’s plans, Water UK said the water companies have plans to make bills more affordable by either freezing or reducing bills in real terms over the next five years.
In a statement the trade association added: “Water companies have been pressing Government to make it easier for them all to adopt social tariffs for many years.
“There is no lack of will on behalf of the water companies.
“We are more than happy to work with Labour on their proposal for a National Affordability Scheme.”