Reducing household bills - Policy in Practice

Rising water bills

Over the last few years, the cost of water has gone up significantly for most households.

In a context where the cost of living has surged, this leaves low-income Londoners - already stretched - in a precarious position.

For many low-income households, support is available to pay water bills. Known as 'social tariffs', households can receive discounts on their water rates. But take up is extremely low, as many households aren't aware of the support available to them.

Using technology to reduce the cost of living

To increase the take-up of social tariffs, we've funded a partnership between Policy in Practice, Thames Water and two London boroughs.

The project uses existing benefits data to identify eligible households automatically, and enrols them directly, removing the need for anyone to apply.

Over 1,200 eligible households were identified across the two boroughs, none of whom had been receiving this support before. On average, it saved each household £316 a year.

A model for reaching the billions left unclaimed

Social tariffs are just one example of a much bigger problem: across the UK, an estimated £23 billion in benefits and entitlements goes unclaimed every year.

This project shows how better use of existing data, alongside partnership working, can reduce this gap, and have a huge impact on reducing the cost of living for Londoners in poverty.

The pilot had such a level of impact it’s being rolled out across more areas. You can read more about the project here.