Northumbrian Water Group (NWG) has pledged to eradicate water poverty across its supply areas by 2030.
The company, which includes Northumbrian Water and Essex & Suffolk Water, described its commitment to lift 400,000 customers from water poverty as a “first” in the water industry.
Water poverty refers to people who spend more than 3 per cent of their income on their water bill, after housing costs.
Ofwat estimates only 10 per cent of customers who are struggling with their bill currently receive help from their water company via a social tariff.
NWG described this finding as a “genuine concern” and said it wanted to take a new approach, co-created with its customers, to focus on “all causes” of water poverty.
The company has also introduced a new social tariff for customers who are “genuinely struggling” to pay their water bills.
It said wider engagement with its customers has shown they support a cross-subsidy to expand the social tariff, which now allows the company to offer 50 per cent discounts for those who need it most.
“The scheme has already seen strong take up in its first few months”, NWG said.
However, the company stressed it does not want to limit the response to the introduction of new tariffs and its customers had “made clear” the importance of services being made available to everyone and affordable for all.
NWG launched its commitment at a parliamentary reception attended by MPs and key figures from the water industry on 22 May.
The event also marked the launch of a research and delivery partnership with charity National Energy Action (NEA).
The partnership, which has “guaranteed three-year funding”, will see NWG fund a new water poverty unit, to take on the challenge of bringing affordable water and affordable warmth to all vulnerable and low-income householders.
Heidi Mottram, chief executive of Northumbrian Water Group, said: “Every day we strive harder to give better service, and our customers tell us, that improving their ability to afford our services is one of the most important ways we can help them.
“I am very proud to announce a long-term commitment to our customers that we believe will deliver the chance to change their lives for the better.
“Working with partners, including our new partner National Energy Action, taking on board customer feedback, alongside activities that seek to make a real difference to our customer’s lives demonstrates our ambition.
“This is not a static, one-shot attempt at improving comparative affordability of our services. It is a first of its kind, long-term commitment; an adaptive and unique effort to eradicate water poverty.”
Adam Scorer, chief executive of NEA, added: ‘’People who struggle to afford a warm and dry home will struggle to afford other essential services, such as water. Understanding what works and how it can be applied in energy and water should bring benefits to both sectors and we look forward to working with NWG, and other water stakeholders, to help make it happen.”
NWG’s commitment will see 300,000 of its customers lifted from water poverty by 2025 and 400,000 by 2030, which will eradicate water poverty in the communities it serves.
The company said it will be achieved by a “holistic solution” that includes:
- Education on the benefits of metering and water efficiency
- Working with partners to offer free financial advice classes
- Building people’s knowledge of financial management, through training, volunteering and team activities
- Supporting community groups as part of the company’s “Just an Hour” employee volunteering programme
- Deploying volunteers in local communities to better understand customers’ specific circumstances and build relationships