Water Charging (Hansard, 18 November 1998)

§ Mr. Meacher

My right hon. Friend the Secretary of State for Wales and I are today publishing our response to the consultation exercise we undertook earlier this year on water charging in England and Wales, "Water Charging in England and Wales: Government Decisions following Consultation".

The driving principles behind the Government's policy are to deliver a system which provides for fair and affordable water charges, particularly for vulnerable customers, while ensuring the sustainable use of water supplies and protection of the aquatic environment. Increased customer choice is an essential ingredient.

When we consulted earlier this year, we put forward a number of policy options. The response to consultation confirms our proposals in a number of areas:

i. Those who currently pay on an unmeasured basis and use water only for essential domestic purposes should be able to continue to pay on this basis in their current home.
ii. We propose to remove the threat of disconnection for non-payment for homes, schools and hospitals.
iii. We propose that domestic customers who currently pay on an unmeasured basis should be able to have a meter fitted, free of charge. Those who request a meter should have the option of reverting to an unmeasured charge within 12 months where that suits their needs.
iv. We propose targeted protection for vulnerable groups with high essential water use who have to pay a measured charge and would be unduly disadvantaged by doing so.
v. We propose to remove the deadline of 31 March 2000 for the use of rateable value as a basis of water charging.

We believe that these policies will fulfil our commitments to increased customer choice, with protection for the most vulnerable groups.

Many people will continue to pay on an unmeasured charge in the future but measured charges can, in the right circumstances, encourage individual customers to use water efficiently. Our policies will ensure that those who would prefer to pay by meter will be able to do so without paying an initial installation cost. We remain firmly of the view that people using water only for essential domestic purposes in their current homes who are currently paying on an unmeasured basis should not be obliged to have their charges set by volume. Our proposals will ensure that people will have to switch to paying on a measured basis in their current homes only if they choose to do so, unless they are using water for non-essential purposes.

We believe that water is essential for life and health, and that no-one should be deprived of it simply because of an inability to pay. Our proposals will mean an end to domestic disconnections, and will ensure that no school or hospital is ever disconnected for non-payment of water bills. We will also ensure that vulnerable groups, in particular large families on low-incomes and those with medical conditions requiring higher than usual water use, are protected from high water charges in the event that they live in a metered property.

Copies of the Government's document "Water Charging in England and Wales: Government Decisions following Consultation" have been placed in the Library of the House.