The Conservatives have accused Labour of backing a “tax on bath time” over proposals to introduce ‘progressive’ water tariffs that would see heavier users charged more.
Water firms are lobbying for seasonal pricing that would hike bills in summer compared to winter, following the driest spring in nearly 70 years and a drought being declared in the North West.
The proposed system – known as rising block tariffs – would charge customers more per litre as their usage increases, requiring smart meters in every home to accurately monitor water consumption.
Labour ministers have suggested they support companies trialling the tariffs. But the Conservatives have hit out, accusing Labour of “waging war on family homes” and warning that young parents will be hardest hit.
Water companies argue the changes would lower bills for most households while encouraging reduced usage. They are now seeking ministerial approval to begin trials, according to The Telegraph.
Water Minister Emma Hardy said she supports trials of the new charges. In a written Parliamentary response, she said the government is in “regular discussions” with water companies “on various issues, including progressive and seasonal water metering tariffs.”
“This Government supports the innovative approaches being taken to trial new charges aiming to make bills fairer and more affordable,” she said. “All companies plan to trial new charging structures by 2030, and some of them plan to introduce them more widely for additional customers if the trials are successful.
“We welcome companies’ willingness to trial innovative new approaches to charging customers, to achieve greater affordability and water efficiency.”
Any trial would be overseen by Ofwat, the independent regulator, to ensure “fair charges for all customers,” Ms Hardy added.
Currently, metered homes pay a fixed standing charge and a flat rate per litre of water, while unmetered homes are billed based on rental value or estimated usage. Larger families and homes with gardens already pay more due to higher usage – but critics argue the new model would see those households hit even harder.
Thames Water, recently fined over £123 million for breaching sewage spill rules, is among the loudest advocates for the change. The debt-laden company plans to begin rolling out a three-tier tariff in 2027, adding an “excessive use” surcharge to help subsidise bills for lower-income households.
It says the scheme will reduce bills by 9% for three-quarters of customers and promote responsible consumption.
But the Tories have branded it “class war in action”, claiming Labour’s support for the idea is ideological.
Kevin Hollinrake, the shadow housing secretary, said: “Labour want to levy socialist-inspired tariffs to punish those who have worked hard to improve their homes and gardens.”
A Labour spokesman dismissed the claims as “absolute rubbish from the same Conservative Party that broke our water industry.”
“After their rule, water bills skyrocketed and we had record levels of sewage being pumped into our rivers,” he added. “While the Tories are making up rubbish, the Labour Government is focused on fixing our water industry, raising over £100 billion to upgrade pipes and cut sewage by nearly 50 per cent.”
Ms Hardy has warned that England could “run out” of drinking water by the mid-2030s without reform, citing plans for nine new reservoirs and speeding up two already in progress. She said £104 billion in private investment from water firms would help cut leakage by 17%.
Water UK, the industry body, last week urged ministers to support progressive tariffs and compulsory metering. In a submission, it called on the UK and Welsh governments to revise guidelines so companies could tailor charges by usage or customer type.
“These changes would enable an enduring move to rising block tariffs, the abolition of standing charges, or other innovative charges such as seasonal charges,” the group said.
