Thames Water has unveiled a new scheme, believed to be the first of its kind, aimed at automatically reducing water bills for low-income households. The UK’s largest water company, serving approximately 16 million customers, is pinpointing those in need of financial aid across 17 London boroughs to automatically enrol them onto its social tariff schemes.

The initiative ensures that those identified as requiring help will have their bills automatically reduced without needing to apply. Thames Water estimates that this move will save around 33,000 struggling households over £300 annually, amounting to savings of more than £10 million each year. This follows a successful trial run in Wandsworth and Richmond upon Thames earlier this year.

The company expressed its commitment to ensuring customers facing financial hardship receive the support they’re entitled to, even if they’re unaware of their eligibility. In collaboration with borough councils and the Policy in Practice social data platform, Thames Water is using data-sharing agreements to identify customers whose water bills exceed five per cent of their net income. These people are then automatically enrolled onto its WaterHelp scheme, which slashes bills by 50 per cent.

The initiative is also pinpointing other patrons who qualify for its WaterSure social tariff, or the Extra Support Scheme which offers aid up to £700. Thames Water emphasised that customers don’t need to be behind on payments to receive financial help. The company is proactively enrolling households with payment arrears into the WaterHelp scheme.

Nina White, Thames Water’s director of income, said: “Our purpose is to deliver life’s essential service and we are determined to support those customers who are struggling to pay their bills. This partnership with the local authorities and Policy in Practice allows us to reach thousands of customers who previously may have been unaware that our WaterHelp scheme can help them. We’re looking forward to the rollout extending to more boroughs across London, with customers enrolled on the scheme automatically if eligible.”

Wandsworth Council’s leader Simon Hogg said: “It’s important that residents receive the help they are entitled to. Over 1,000 households in Wandsworth will now automatically see cheaper water bills, offering a crucial lifeline to those facing economic hardship and struggling with rising bills.”

Earlier this month, a consortium of Thames Water creditors unveiled proposals detailing how they would deliver £20.5 billion of investment to rescue the beleaguered utility company’s fortunes. The supplier’s primary lenders – spearheaded by a 15-strong investor group known as the London and Valley Water consortium – have vowed to “fix the foundations” of Thames Water through this substantial spending package submitted to regulator Ofwat.

The consortium has committed to prioritising improvements to Thames Water’s dismal pollution record and leak management, setting ambitious goals to reduce sewage discharges by a minimum of 135 annually. Thames Water is on the brink of nationalisation while grappling with enormous debt burdens.