WATER RATES HELP MAY BE ON THE WAY

LONG-AWAITED help could be at hand for Plymouth's poorest households struggling to pay hefty water bills with possible savings of up to £170.

Ministers have been called on to consider introducing a new regional "water benefit" to help hard-pressed families saddled with hefty charges.

It is among a raft of measures being proposed by an inquiry into water pricing, headed by Anna Walker.

In addition to outlining help for those who cannot pay, it also highlights the need for urgent law changes to chase down water customers who repeatedly refuse to pay their water bills.

Currently no water company can cut off supplies to people's homes on public health grounds.

Ms Walker said bad debt was placing "too large a burden" on paying customers in Plymouth, who face an estimated extra £11 on their annual bills because of the problem argues Anna Walker.

And while her review, excluded considering disconnection, her interim report invites views on the possibility of restricting water supplies to persistent 'won't pay' customers, with the installation of trickle meters in extreme circumstances.

The plight of hard-pressed householders in Plymouth is highlighted in the interim report which notes that South West Water customers pay the highest bills in the UK, which last year stood at £497, compared to £286 paid by Thames Water customers.

Overall in the South West Water area, 33.2 per cent are spending more than three per cent of their income on water.

In the poorest homes, around 8,000 households in the region are spending more than ten per cent of their income on water.

And while the South West may see smaller bill hikes in the future, bills will remain high, warns the report.

It noted that the majority of responses it received from South West Water customers showed "considerable anger and frustration" about the high levels of bills in the region.

However, the inquiry signalled it did not favour spreading the cost burden felt in the South West, and that regional pricing is "generally correct".

There have been long-standing calls for others to share the burden of South West Water customers who face the highest charges to keep a third of the country's shoreline clean for visitors.

Local people also benefited from environmental improvements and tourism, it said.

However, the review team did back assistance for those struggling to pay their bills.

It said: "Recognising the lack of sensitivity of the benefit system to large regional differences in water cost, the UK government should consider introducing a regional water benefit."

In its absence, it called for a discount on bills of low income households receiving Council Tax benefit in high charge areas like the South West, down towards the national average bill, based on cutting water usage.

Greater promotion should be given to a scheme to reduce the costs of water charges for those on low incomes who have extra essential supply needs called WaterSure, and bills should be capped at the at the national average.

The difference in the South West Water region between the regional average bill and the national average bill was £171 in 2007/8.

A legal requirement should also be imposed on utility companies to operate a water efficiency scheme targeted at low-income customers, similar to that operated by South West Water.

The report also highlighted that he water industry has disproportionately high levels of bad debt compared with other utilities.

For South West Water this stands at more than £20million of debt outstanding after more than 12 months.

In the report, Ms Walker writes: "This suggests to me that something is fundamentally wrong here. The report concludes that legislative changes will be needed to ensure that companies have the ability to pursue effectively those that can afford to pay but choose not to do so."

The review continues with a further round of consultation before its final report in the autumn.

Labour MP for Plymouth Sutton Linda Gilroy said the report puts forward "workable suggestions" for how bills could be lowered.

She said: "The proposed changes to WaterSure (which is a scheme to reduce the costs of water charges for those on low incomes who have extra water needs) could mean a drop in costs of around £170 for those in most need and could reduce bills for some 80,000 households on Council Tax benefit in Devon and Cornwall."

Fellow Labour MP for Plymouth Devonport Alison Seabeck said: "This is potentially good news for all constituents in the South West. It is a very important step forward in reducing the unfair charges we have had for far too long."