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Proceeding contribution from Mary Creagh (Labour) in the House of Commons on Wednesday, 29 February 2012. It occurred during Debate on bill on Water Industry (Financial Assistance) Bill.


Water Industry (Financial Assistance) Bill

I do not have those figures. Does the hon. Gentleman have them? Perhaps he will share them with the House in the debate. We accept the argument that the south-west requires additional help to keep water affordable, but stopping there misses the point. Ofwat, the independent regulator, estimates that a fifth of households are already spending more than 3% of their income on their water bills, yet Ministers have failed to bring forward any plans to tackle high bills, apart from in the south-west, which has the highest bills in the country. There, around 200,000 people spend more than 3% of their disposable income on water bills, but in the Thames region there are a staggering 1 million people in the same predicament, so surely we should be working towards extending help through a national affordability solution. Without one, the effect of the Government's £50-a-year payment in the south-west will soon be wiped out by price rises; prices will rise by more than inflation in each of the next three years. The assistance is welcome, but decoupled from wider reform, it will provide little lasting help on water affordability. I hope that answers the point raised by the hon. Member for St Ives (Andrew George). We know from Ofwat that the groups most vulnerable to water poverty are single parents, pensioners and jobseekers. When we were in government, we introduced WaterSure, a national affordability scheme paid for by a cross-subsidy from water customers, and paid only to metered households with three or more children or to people with certain medical conditions, but the limitations of the scheme are apparent, because not everyone in water poverty has three or more children, and many pensioners and jobseekers will not be eligible for the scheme. There is a further problem of penetration of WaterSure. Only a third of eligible households access the scheme, so there is big issue relating to the role of the water companies in educating their customers about WaterSure and the role of places such as jobcentres in making sure that people have access and understand their entitlement.


Secondary information

Type
Proceeding contribution
Reference
541 c358-9 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Finance Greater London Infrastructure Government assistance Pollution Water Water charges Water supply Water companies Sewers South West Water Thames Water River Thames South West Social tariffs
Legislation
Water Industry (Financial Assistance) Bill 2010-12
Link
View this Proceeding contribution on www.publications.parliament.uk