Workers to crack down on water companies and increase compensation levels, doubling payouts – here’s how it works

Households in England and Wales are set to receive extra compensation from ‘broken’ water companies after government crackdown on customer service.

This year, households have already had to boil tap water because it was unsafe to drink, as they became ill from contamination and ran out of water. But so far, there has been no ban on garden hoses.

However, the amount of compensation that households can receive is virtually negligible compared to the level of inconvenience caused by the disrupted water supply.

The government now has plans to change the compensation scheme for water bills, in some cases doubling the amount water companies have to pay.

Here you can read everything you need to know about compensation for your water bill and what consequences any changes may have for you.

What are my current rights to compensation for my water bill?

If your home is flooded by sewage, you could get up to £1,000 back.

If your water supply is cut off you will be paid around £20, plus £10 for every additional 24 hours that this situation continues.

If you have low water pressure you can receive a one-off payment of £25 per year. If water companies are slow to respond to complaints you will receive £20.

If a water company makes an appointment and then fails to keep it, you are also eligible for £20.

How can water compensation be improved?

The government wants to increase compensation in the following ways:

• Sewage flooding in homes: Maximum compensation increased from 100 per cent to £2,000
• Water disconnection: £50, with an additional £50 per 12 hours
• Low water pressure: up to five payments of £50 per year
• Water company handles complaints poorly: £40
• Water company misses appointment: £40

The government also wants to introduce new water-related issues for which households can receive compensation.

These include automatic payments for the issuance of ‘boil notices’, where households are advised to boil water before drinking it or using it for cooking.

The minimum amount a home can get in compensation after a boil flood is £50 under government plans.

When will the new compensation rules come into effect?

No date has been set yet. The government is currently consulting on the plans and will then consider the responses and further develop the plan.

The new compensation requirements have not yet been confirmed. However, these are the requirements the government intends to implement unless there is compelling evidence as to why this is not the case.

Environment Secretary Steve Reed said: ‘Our water industry is broken. After years of failure, households and businesses have been let down time and again by water companies.

‘The new government will clean up the water sector and turn the tide and stop the destruction of our waterways. In doing so, we will ensure that water companies protect the interests of their customers and the environment.’

What about our polluted waterways?

The government also has plans to tackle the polluted water scandal, which has seen water companies come under fire for pumping sewage into rivers, lakes and the sea.

Water companies have already signed up to Labour’s first reform plans, which include more money to fix the UK’s neglected sewerage system, much of which dates back to Victorian times.

Labour also wants the private sector to invest more in reservoirs, water pipes and flood control.

If a water company does not spend the money set aside for these improvements, it will be refunded to customers.