Water bills are set to rise for 14,000 families in a controversial new trial, sparking concerns about the impact on vulnerable households and the potential for 'social engineering'.
The proposed block pricing model, which charges customers based on their water usage, has been met with criticism from consumer groups and political opponents alike. While water companies argue that the model is necessary to encourage efficient water use, critics argue that it could disproportionately affect those with higher water needs, such as families and disabled people.
Affinity Water, which serves large parts of the South East, is preparing the biggest experiment of its kind, potentially covering up to 14,000 properties across the Home Counties later this year. This follows a smaller pilot scheme involving 1,500 households between 2023 and 2025.
The plans include a fourth pricing tier aimed at households with exceptionally high consumption levels, and the use of smart meter data to create personalized consumption baselines for individual properties. This approach is seen as fairer than relying on postcode averages, but it also raises concerns about the potential for unfair disadvantage.
Portsmouth Water is also developing two separate trials for smart meter customers during the 2026-27 financial year, offering households the option to pay in advance for a fixed amount of water at lower rates, with additional charges for exceeding the allowance. Severn Trent, Britain's largest water supplier, launched a similar rising block tariff trial in February affecting 5,000 households.
Labour has introduced a legally binding target to reduce water consumption by 20% per person by 2038, and Baroness Brown, the Government's climate change adviser, has suggested higher charges for watering large gardens could help reduce demand during periods of pressure on supplies. However, the Conservative opposition has criticized the proposals as a 'tax on bath time' and 'class war' against households with larger properties.
Regulator Ofwat has encouraged water companies to take stronger action to curb water usage and suggested premium charges for owners of swimming pools, hot tubs, and large sprinkler systems during shortages. Consumer groups, such as Citizens Advice, have raised concerns about the potential impact on vulnerable households, with Anne Pardoe warning that 'carefully designed safeguards must be implemented to avoid intensifying pressure on groups who have higher water needs'.
As the trial progresses, it remains to be seen whether the proposed billing model will achieve its intended goals of encouraging efficient water use and reducing consumption, or whether it will disproportionately affect vulnerable households and exacerbate existing social and economic inequalities.
