You will get up to £2,000 for severe issues such as flooding, while households suffering consistent low water pressure will get up to £250
Martin Lewis’ MoneySavingExpert.com website has explained how households in England could be entitled to up to £2,000 in compensation from their water supplier from today.
You could be entitled to payments for poor service such as disruption to your supply, low pressure or sewer flooding. You will get up to £2,000 for severe issues such as flooding, while households suffering consistent low water pressure will get up to £250.
Payments will be automatically credited to your water account. The Department for Environment, Food and Rural Affairs (Defra) said it is the first increase in compensation rates in 25 years.
Defra will expand the list of circumstances that will trigger compensation payments from October 2025. This includes payments for when customers are asked to boil their water due to contaminated supply.
This will entitle households to £40 compensation, plus £20 for each 24 hours the “do not drink” notice is in place, up to a maximum of your annual water bill, excluding sewerage services.
MSE said: “The changes are being introduced under mandatory new rules to be enforced by the Department for Environment, Food and Rural Affairs (Defra).
“Until now, guidelines on compensation payouts in England had been voluntary. These had been in place since 2000 and were monitored by water regulator Ofwat.”
Environment Secretary Steve Reed said: “Too many water companies are letting down their customers – with leaking pipes, poor water supply and low water pressure.
“The Government is holding water companies to account by making them put money back into people’s pockets when they fail their customers.”
Mike Keil, the chief executive of the Consumer Council for Water (CCW), said: “Customers expect to be treated fairly when their water company lets them down, so we’re delighted the Government has moved at pace to strengthen service standards.
“This should give people peace of mind they now have far stronger protection from a much broader range of water company service failures – from the slow installation of water meters to the mishandling of debt recovery.
“As well as bolstering payments for thousands of customers, these changes mark an important step towards restoring trust in the water sector which is at an all-time low.”
Ofwat chief executive David Black said: “’We welcome these improvements to guaranteed standards and payments for customers.
“When customers suffer from problems like low pressure, disruptions to supply or sewer flooding, they can experience major stress and inconvenience, and payment amounts must recognise the disruption to their lives when standards are not met.
“These new changes are another way to make sure customers are protected when companies get it wrong.”