One in five customers (20%) are struggling to pay their water bills and 51% say they have regularly faced difficulties paying all household expenses – signalling a sharp increase in financial vulnerability over the past six months.
In a series of reports by the regulator and CCW, Ofwat called on water companies to make sure customers are better informed about financial support and tariffs.
The regulator also said it was making progress on developing the customer-focused licence condition it proposed earlier this year.
Director of corporate communications Claire Forbes said Ofwat and CCW would conduct consumer research next year to understand what people believe should be included in the new licence condition.
The regulator believes adding a new condition will “ensure that companies remain focused on delivering high standards of customer service and support for the full diversity of customer needs”.
Levels of satisfaction and trust appear to have fallen through the year, with the report indicating 49% of people felt their company provided value for money to customers, down from 55% in March. People living in the Midlands were most likely to trust their provider (47%), while those in the south east were least likely (42%).
Broken down by services, only 43% of people believe their company is investing sufficient money in the network and just over half (53%) had faith that wastewater and sewage was responsibly taken away and dealt with.
One-fifth (22%) did not believe their water company acted in the interests of the environment.
Year on year, concerns about paying for water have grown from 15% last year to 20% of billpayers admitting they are struggling at the moment. While water remains a lesser worry for the majority of householders than gas, heating, electricity, food and rent, the uptick in financial vulnerability indicates support is needed. The research indicated the number of people receiving help from water companies grew this year from 6% in March to 9% in October.
The cost of living crisis has left more people concerned about finances than when Ofwat published its cost of living research earlier this year, when 34% of people expected to struggle to pay regular bills. The findings show an increase in the amount of households facing financial difficulties this year compared to 2021, when 12% of people said they struggled ‘all or most of the time’ to pay. That has now more than doubled to 25%. Conversely the proportion of people who ‘never’ felt difficulties paying dropped from 45% to 28%.
The amount of people who experienced difficulties over the past year paying their water bill (15%) remained behind gas and electricity (26% and 25% respectively). The data showed more people found it hard to afford council tax (19%) and food (20%) than water, which ranked alongside petrol and travel costs for household finances over the past year.
Younger people were more likely to find it hard to pay, with 75% of 18-34 year olds stating they sometimes or often had insufficient money. Over 55s were the least likely to be in that situation however one-third (32%) admitted financial concerns, as did 59% of 35-54 year olds.
Emma Clancy, chief executive of CCW, said: “The case for a new water affordability scheme to replace the current postcode lottery of financial support has never been more compelling. Without fair and consistent support across England and Wales, the next generation of customers could face the double whammy of unaffordable bills and an environment starved of vital investment.”
The survey, conducted by Savanta in October of 2,328 water bill payers in England and Wales was weighted to be nationally representative.