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Power & Utilities

Water firms to pay double compensation for service failures under Labour proposals

The UK Government wants to double compensation for households and businesses affected by poor water services.

The proposed measures, proposed by Secretary of State for Environment, Food and Rural Affairs Steve Reed, will entitle customers to higher payments in a broader range of circumstances when basic water services are disrupted.

Under the proposed changes, compensation rates for existing standards will double for water firms including Thames Water, with more than double payments for highly disruptive incidents such as unannounced supply interruptions or missed appointments.

Additionally, the government plans to expand the list of compensable events, including automatic payments for boil notices and failures in conducting metre readings or installations.

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

“The new government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment.”

Jenny Suggate, Director of Policy, Research and Campaigns at the Consumer Council for Water (CCW), welcomed the consultation, stating: "We’re delighted the government is fast-tracking efforts to improve the Guaranteed Standards Scheme, with the potential to boost compensation and support for hundreds of thousands of people each year when they are let down by their water company."

An eight-week consultation on the proposals will run until October 7, with further legislative changes expected to follow.

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