Almost one million pensioner households in England and Wales could be living in water poverty by 2029/30 if the UK Government doesn’t introduce a single social tariff, according to a new report by charity Independent Age. This is an increase from 2022/23 when there were 750,000 pensioner households living in water poverty.
The report, Looking for a Lifeline, also found that those from racially minoritised groups are more likely to live in water poverty, which is defined as households spending more than 3% of their income after housing costs on water.
Alongside the report launch, Independent Age will be delivering a letter to the UK Government calling for a single social tariff for water in England and Wales to end the current postcode lottery of financial support, and to prevent a surge in water poverty. The charity will also be delivering towels printed with quotes from older people cutting back on their water usage.
Quotes include:
“At the moment I cannot afford to flush my toilet every time I use it”
“I only shower once a week and only wash up every two to three days”
“Yet another bill that I will struggle to pay. Where do the water companies think the extra money will come from”
Water bill anxiety
Ahead of Ofwat announcing its final determinations for the 2024 price review, on December 19th, the new research lays bare the financial anxiety regarding water bills felt by older people living in financial hardship. Yougov polling commissioned by the charity in October showed that 66% of older people (65+) in England with an income of under £15,000 would find it difficult to manage a 20% increase to their water bill.
Cutting back
The research found that 40% of older people (65+) in England living on a low income have taken action to reduce their water bill. When asked about what actions they had taken in the past six months between January and July 2024:
- 45% said they reduced their washing machine usage
- 44% said they reduced the amount they were flushing the toilet
- 30% were using the kettle less
- 28% were reducing how often they shower
Single social tariff
Independent Age research has put forward four different models for a single social tariff which could all reduce water poverty. These include a fixed bill reduction, percentage discount, a daily block of free water and a bill cap.
The introduction of a single standardised social tariff would have widespread support, with 73% of all older people in England and 72% in Wales backing the idea when polled in July 2024. The research found that the different models had the potential to lift between 292,000 and 578,000 older people out of water poverty.
Now, the charity is calling on the UK Government to take heed of the report, conduct its own research and establish a social tariff to lift everyone out of water poverty, including older people in financial hardship.
Commenting on the report, Independent Age Chief Executive Joanna Elson, CBE said:
“It’s extremely concerning to see that without urgent action from the UK Government, there could almost be one million older households living in water poverty by 2029/30. This can’t be allowed to happen.
“Living in water poverty means cutting down on washing, laundry, flushing the toilet and boiling the kettle. It’s not right that so many older people feel like they have no choice but to make these cutbacks.
“Our research shows just how impactful a single social tariff for England and Wales would be, to support people who don’t have enough money to pay their water bills and to end the current postcode lottery. Where you live shouldn’t dictate how much financial support you receive.”
Yvonne Bailey, 79, from Oxfordshire, explains what it’s like to be anxious about water bills.
“I’m worried sick, because I can manage as it is now, but if they start whacking the price up hugely, no. I’m just going to end up in water poverty, like I’m already in fuel poverty.”
Martin, 68, from the Midlands, talks about how his provider’s social tariff reduced water bills by 50%
“I nearly fell off my chair at the time because of the size of the reduction. I thought, ‘Well if I don’t get anything, fair enough. If I get £1 or £2 off, then that’s a bonus.’ So yes, it was a big chunk off my monthly outgoings on my water.”
