Oral Answers to Questions

Thomas Docherty Excerpts

Thursday 27th March 2014 Commons Chamber

[Mr Paterson]

I am very happy to join my hon. Friend in congratulating South West Water on what it has done. A reduction in bills is in marked contrast to what happened under the previous Government, when bills went up by 20%.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

We welcome the Secretary of State back to his place after his recent appointments.

On Tuesday, Conservative and Liberal Democrat peers blocked Labour’s proposals to help households that are facing growing water bills at a time when their incomes are being squeezed more and more. As we have already heard, one in 10 households are now paying more than 5% of their income to the water companies, yet as the Secretary of State has admitted, the Government are refusing to lift a finger to help them. Will he tell us the specific reasons why this Government have opposed Labour’s proposals for a national affordability scheme?

[Mr Paterson]

I am grateful to the hon. Gentleman for his kind comments.

We are continuing the policy left by the previous Government that this should be voluntary—that is how they legislated as recently as 2010. We are clear that this is an issue that should be decided locally, because if there is a reduction for some customers, it has to be paid for by the remaining customers in that area. We are very pleased that we are seeing progress. We now have a robust Ofwat, unlike under the previous Government, and we are going to see significant changes in prices. We must also remember that we have to keep investment coming in from domestic and foreign sources, because every 1% increase in interest adds £20 to a water bill—there is a balance here.