Labour will reform the water industry to help those who can’t afford to pay their bills

Today marks 25 years since the water industry was privatised. In aide of this Labour have announced that they would introduce reforms that would mean people get a better deal from water companies.

These announcements will be made by Shadow Environment Secretary Maria Eagle MP at a speech in  Thurrock, Essex. Where she’ll outline that under the Coalition water bills are increasing – she’ll point out that household water bills have risen by 12.5% since 2010 – and that nothing has been done to address water companies that are paying little tax in relation to their profits (in 2013 the industry paid-out £1.8 billion in dividends but only paid £74 million in corporation tax).

Eagle will lay out Labour’s reforms for the water industry, explaining that a next Labour government would create a mandatory ‘National Affordability Scheme’, which would force water companies to put those people struggling most with their water bills on a cheaper tariff.

This would include ensuring that these measures were included in water company licences, meaning this would not simply result in companies increase water bills for other customers .

These reforms would also make it so that companies had to publish all of the information about their corporate structure,levels of investment, ownership, taxation and dividends paid to shareholders.

Eagle will say:

“It’s not right that some companies pay no tax while millions of customers are struggling with the cost of living crisis.

“It’s time for a new deal with the water companies. Labour will reform the water industry, creating a national affordability scheme to support those customers who are struggling most with their bills. 

We’ll also give the regulator tough new powers to cut bills and ensure that water companies play by the rules and put consumers first.”