This pilot project shows how automatic enrolment can significantly increase access to water bill discounts for low-income households.
What's this?
Water bills are rising sharply, with the average household facing an increase of £133 from April 2025. As living costs surge, more Londoners are struggling to pay essential bills.
Social tariffs – discounted water rates for low-income households – can provide vital support. But uptake is low due to lack of awareness and application barriers.
This pilot project tested a new approach: automatically enrolling eligible households onto social tariffs using local authority benefits data.
What happened
Policy in Practice worked with Thames Water and Richmond and Wandsworth Councils to identify customers eligible for social tariffs. By matching water arrears data with local authority benefits records under the Digital Economy Act, they were able to pinpoint struggling households who were not yet getting help.
Of the 2,934 customers in water arrears successfully matched across datasets, 1,234 were identified as eligible but not receiving a social tariff. These households were automatically enrolled, each receiving an average discount of £316 – a combined annual saving of £390,000.
What changed
The pilot identified 1,234 households across Richmond and Wandsworth that were identified as eligible for social tariffs, but not currently getting support. These households were automatically enrolled, each receiving an average discount of £316 – a combined annual saving of £390,000. The pilot resulted in:
- More people getting support: Automatic enrolment boosted take-up by 9.1% in March, with potential to increase it by 16.2% in April.
- Bigger savings: Customers eligible for the WaterHelp tariff will save up to £416 a year. Those on WaterSure could see savings of £665.
- Lower admin costs: Auto enrolment is more efficient than mass marketing or manual applications – good news for water companies too.
- Better data use: The pilot shows how local authority data can target support more accurately and quickly.
What’s next
Thames Water and the local authorities plan to build on this work, with a focus on households at risk of falling into debt. The project also highlights a wider issue: councils don’t currently receive full Universal Credit data from the DWP. If they did, support could reach thousands more people – and help tackle water poverty before it hits.
Policy in Practice continues to work with local authorities and utility companies to explore how this approach can be scaled, helping more households access the support they’re entitled to.