Water Bills

Debate between Lord Woodley and Baroness Hayman of Ullock

Thursday 21st November 2024 Lords Chamber

[Lord Woodley]

To ask His Majesty’s Government what steps they are taking to reduce water bills for consumers.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

My Lords, of course, no one wants to see bills rise. We are committed to tackling water poverty and holding the water sector accountable for its commitment to end water poverty by 2030. We are therefore pushing companies to ensure that sufficient support is available for customers who are struggling to pay their bills, while also challenging Ofwat to make sure that all company investments are affordable and that customers do not pay twice for upgrades.

[Lord Woodley (Lab)]

My Lords, since privatisation, water companies have had 1,100 criminal convictions and have also paid out over £85 billion in dividends. They charge people for sewage disposal but dump millions of tonnes of sewage into our rivers and seas. This is fraud. Does the Minister agree that rather than hiking bills, these companies should give refunds to customers for making fraudulent charges?

[Baroness Hayman of Ullock (Lab)]

My noble friend points out some of the disgraceful behaviour we have seen from water companies in recent years. We expect companies to invest their own money going forward. However, we recognise that new investment means that customer bills are likely to rise. It is Ofwat’s responsibility to independently scrutinise water company plans, ensuring that the prices companies charge their customers are fair and proportionate. Vital infrastructure investment funding is ring-fenced and can be spent only on upgrades benefiting customers and the environment. Ofwat must ensure that when money for investment is not spent, companies refund customers, with money never allowed to be diverted for bonuses, dividends or salary increases.