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To ask the Secretary of State for Environment, Food and Rural Affairs, what steps she has taken to help ensure consistency between water companies in the inclusion of Universal Credit housing costs when calculating household income.
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps she has taken to help ensure consistency between water companies in the inclusion of Universal Credit housing costs when calculating household income.
Water companies are responsible for the design of their social tariffs and may take different approaches when assessing household income, including when considering Universal Credit and housing cost. Government is working with industry to keep support schemes under review to ensure that vulnerable customers are supported. In addition, we are reforming the statutory WaterSure scheme, including extending eligibility and increasing support for qualifying households.
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of water companies’ environmental and service performance on water bills.
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of water companies’ environmental and service performance on water bills.
Ofwat’s outcome delivery incentives (ODIs) ensure that, where performance commitments are not met, companies must reimburse customers through lower water bills (known as ‘underperformance payments’) in the next financial year. As a result, for the draft determination of ODI payments for 2024-25, Ofwat has instructed companies to return over £260m to customers. This will be returned through bill adjustments.
Government is also taking forward a programme of reform to ensure that the water system better delivers outcomes for customers in a way that is efficient, fair and affordable.
We are working with industry to keep support schemes under review to ensure that vulnerable customers are supported. This includes strengthening support for vulnerable households through reforms to WaterSure, the statutory affordability scheme for low‑income households with high essential water use. We also expect water companies to ensure customers know what support schemes are available and how to access them as needed.
It has been brought to my attention that a written answer given to Lord McNicol of West Kilbride contained an incorrect answer which was intended to answer a different question.
The reply to written Parliamentary Question HL632, tabled by Lord McNicol on 3 June 2026, gave the following answer intended for...
It has been brought to my attention that a written answer given to Lord McNicol of West Kilbride contained an incorrect answer which was intended to answer a different question.
The reply to written Parliamentary Question HL632, tabled by Lord McNicol on 3 June 2026, gave the following answer intended for...
To ask His Majesty's Government what modelling they have undertaken on the proportion of households for which water bills will be unaffordable by 2030; and what steps they are taking to mitigate this.
To ask His Majesty's Government what modelling they have undertaken on the proportion of households for which water bills will be unaffordable by 2030; and what steps they are taking to mitigate this.
Water companies must submit their estimated water poverty levels as part of their Price Review 24 business plan. From these projections we expect around 1 million households to be in water poverty by 2030. The Water Servies Regulation Authority (Ofwat) will publish a Cost-of-Living Report on affordability challenges this summer.
We expect all water companies to support customers struggling to pay their bills including more than doubling the number of customers receiving social tariffs. We will continue to take action to ensure the most vulnerable are protected from rising bills. As part of this, this Government is undertaking reforms to the statutory support scheme WaterSure
Lords statement regarding the position of Thames Water and the proposed recapitalisation package under consideration.
Lords statement regarding the position of Thames Water and the proposed recapitalisation package under consideration.
My Lords, I thank the Minister for answering on this Statement in your Lordships’ House. Thames Water has scandalised our country while asking its customers to pay more for less. For the sake of customers and taxpayers, we now need stability, not uncertainty. This Statement has not announced any change...
My Lords, I thank the Minister for answering on this Statement in your Lordships’ House. Thames Water has scandalised our country while asking its customers to pay more for less. For the sake of customers and taxpayers, we now need stability, not uncertainty. This Statement has not announced any change...
My Lords, I want to return to a point I raised in this House only last week when I asked whether the Government were delaying the clean water Bill pending resolution of the Thames Water situation. We were told then that the Government were ready to deploy a special administration...
My Lords, I want to return to a point I raised in this House only last week when I asked whether the Government were delaying the clean water Bill pending resolution of the Thames Water situation. We were told then that the Government were ready to deploy a special administration...
My Lords, I thank noble Lords for their questions on this Statement. There are quite a lot
of questions, so I will do my best to cover them but, as always, if I have missed anything out, we will get back to noble Lords.
First, it is important to point out...
My Lords, I thank noble Lords for their questions on this Statement. There are quite a lot
of questions, so I will do my best to cover them but, as always, if I have missed anything out, we will get back to noble Lords.
First, it is important to point out...
My Lords, the Minister will be aware that it is not necessarily just ownership of a water company that is the deciding factor, and there are other jurisdictions in which leakage and sewage going into rivers and the sea are problems. I think of Denmark, where the vast majority of...
My Lords, the Minister will be aware that it is not necessarily just ownership of a water company that is the deciding factor, and there are other jurisdictions in which leakage and sewage going into rivers and the sea are problems. I think of Denmark, where the vast majority of...
Clearly, we need to see the water Bill to see the detail on that and many other issues that people have a particular interest in. The Government are clear that we do not want to have overburdensome regulation. That is important. The regulator is there to help support the industry...
Clearly, we need to see the water Bill to see the detail on that and many other issues that people have a particular interest in. The Government are clear that we do not want to have overburdensome regulation. That is important. The regulator is there to help support the industry...
My Lords, the dire position of Thames Water is, above all, a regulatory failure. Does the Minister accept that Ofwat’s record as a regulator has been absolutely woeful? Above all, it failed to require water companies to invest over a long period of time in appropriate infrastructure of all kinds.
My Lords, the dire position of Thames Water is, above all, a regulatory failure. Does the Minister accept that Ofwat’s record as a regulator has been absolutely woeful? Above all, it failed to require water companies to invest over a long period of time in appropriate infrastructure of all kinds.
I suggest to the noble Lord that the fact that we are talking about removing Ofwat and bringing in a single, more powerful regulator in the water Bill answers his question. It is not just about who the regulator is but about what the regulator’s priorities are: what is it...
I suggest to the noble Lord that the fact that we are talking about removing Ofwat and bringing in a single, more powerful regulator in the water Bill answers his question. It is not just about who the regulator is but about what the regulator’s priorities are: what is it...
My Lords, when the water industry was privatised over 30 years ago, it was almost entirely debt-free. Since then, as the Minister said, debt has been racked up. The Minister said that there will be provisions in the new water Bill for creating a new regulator. Further to the previous...
My Lords, when the water industry was privatised over 30 years ago, it was almost entirely debt-free. Since then, as the Minister said, debt has been racked up. The Minister said that there will be provisions in the new water Bill for creating a new regulator. Further to the previous...
The detail of the regulator will be in the new Bill. The noble Lord has mentioned this to me a number of times. That companies have been allowed to generate debt to use the money has been a cause of many of the difficulties that we see today. The way...
The detail of the regulator will be in the new Bill. The noble Lord has mentioned this to me a number of times. That companies have been allowed to generate debt to use the money has been a cause of many of the difficulties that we see today. The way...
My Lords, I declare my interest as set out in the register. Thames Water bills went up around 40% to pay for the current AMP cycle. However, the present company structure means that it will not be able to make the investment to meet the targets under the present AMP...
My Lords, I declare my interest as set out in the register. Thames Water bills went up around 40% to pay for the current AMP cycle. However, the present company structure means that it will not be able to make the investment to meet the targets under the present AMP...
My understanding is that that is not the assessment by Ofwat at the current time. However, the noble Lord makes some good points. I am sure that the Secretary of State and the Minister for Water meet regularly with Ofwat. We are watching very closely for when or if there...
My understanding is that that is not the assessment by Ofwat at the current time. However, the noble Lord makes some good points. I am sure that the Secretary of State and the Minister for Water meet regularly with Ofwat. We are watching very closely for when or if there...
My Lords, do the Government agree that Thames Water needs to put in a lot of new, larger waste pipes and an extra reservoir to cater for the extra population that we have experienced in the area? What is the Minister’s rough estimate of how much capital this new investment...
My Lords, do the Government agree that Thames Water needs to put in a lot of new, larger waste pipes and an extra reservoir to cater for the extra population that we have experienced in the area? What is the Minister’s rough estimate of how much capital this new investment...
On the basis that I do not know how many pipes, what size reservoir and where it would be, it is difficult to assess a capital investment. The Government have a reservoir policy. We have committed to building new reservoirs. No Government have done that for many years now, which...
On the basis that I do not know how many pipes, what size reservoir and where it would be, it is difficult to assess a capital investment. The Government have a reservoir policy. We have committed to building new reservoirs. No Government have done that for many years now, which...
I agree with the Minister that debt overburdening of the company was a major cause of its problems. She has heard me call many a time for the new regulator to have the proper understanding of financial engineering, which the current Ofwat team simply did not have. That enabled the...
I agree with the Minister that debt overburdening of the company was a major cause of its problems. She has heard me call many a time for the new regulator to have the proper understanding of financial engineering, which the current Ofwat team simply did not have. That enabled the...
The noble Lord is correct that how debt was leveraged was unsustainable. It has led us to a situation where companies—not just Thames Water—are saddled with a ridiculous amount of debt that the regulator should have had more of a grip on. I am happy to discuss further the noble...
The noble Lord is correct that how debt was leveraged was unsustainable. It has led us to a situation where companies—not just Thames Water—are saddled with a ridiculous amount of debt that the regulator should have had more of a grip on. I am happy to discuss further the noble...