Defra has confirmed the first major overhaul of WaterSure since 1999, with officials estimating that around 300,000 low‑income households will see lower water bills following today’s announcement (Friday 6 March 2026). (gov.uk)
WaterSure currently caps bills for households on a water meter where high essential use is unavoidable due to a specified medical condition or because three or more children live at home, alongside receipt of a qualifying benefit. Customers who cannot have a meter fitted are assessed on an alternative charge, and applications are made through the water supplier. (gov.uk)
Eligibility will widen to include Disability Living Allowance, Personal Independence Payment and Attendance Allowance within the statutory list of qualifying benefits. Claimants in these groups must still have high medical‑related water use and, under the reform package, meet a new household income threshold set at £25,745. Defra’s modelling indicates about 53,000 additional households will qualify. (gov.uk)
Bill caps will be standardised. Companies will have to apply the lowest available average bill-either the overall company average or the metered average-when setting the WaterSure cap, addressing variation in how caps are currently calculated. A new single‑occupier cap will align charges with the average consumption of a one‑person household. (gov.uk)
Defra expects most existing recipients to see further savings of up to £100 as the new cap rules take effect. Indicative impacts include an estimated 53,000 single‑occupier households saving around £100, with roughly 130,000 multi‑occupier households saving an additional average of £26 a year. (gov.uk)
As of 2024/25, approximately 260,000 households were supported by WaterSure-around 230,000 in England and 30,000 in Wales-with an average reduction of £325 against typical pre‑scheme bills of about £890. Government figures cite a 26% rise in average bills to £603 in 2025/26, with a further 5% increase to £639 forecast for 2026/27, framing the case for reform. (gov.uk)
The package is scheduled to commence in early 2027. Implementation will be mandatory for companies operating in England, while participation in Wales will be voluntary. Funding will be provided through a cross‑subsidy estimated at £1.14 added to other customers’ bills. (gov.uk)
Administrative burdens will reduce as the option to require a medical practitioner’s note is removed; water companies have agreed to apply this change voluntarily. The aim is to speed up decisions and cut the cost of applying for support for eligible households. (gov.uk)
The reforms follow a Defra consultation held between 21 July and 1 September 2025, which received 63 responses. Proposals consulted on included adding disability benefits to eligibility, recalibrating the cap to the lowest average bill, introducing a single‑occupier cap and removing the option to require a doctor’s note. (gov.uk)
The policy sits alongside commitments in the government’s Water White Paper, which highlights plans to accelerate smart metering-targeting 50% coverage by 2030-and to introduce mandatory water efficiency labelling. These measures are intended to improve long‑term resilience while supporting affordability through reduced consumption. (gov.uk)
Consumer groups, including the Consumer Council for Water, Scope and the Money Advice Trust, have welcomed the direction of travel, pointing to unavoidable high use among some disabled households and the value of more consistent, higher assistance. Their comments were published alongside the announcement. (gov.uk)
For advisers and households, the operational tests remain: a water meter (or assessed charge where metering is not possible); unavoidable high use linked to a specified medical need or three or more children at home; and receipt of a qualifying benefit-now including disability payments-subject to the new income ceiling. Applications continue to be made to the relevant water supplier, with annual renewals standard practice. (gov.uk)