Thames Water WaterHelp - outrageous hidden downside of their social tariff

Schnauzer25

I'm a single occupier in a one-bedroom flat (water meter not possible), and, like many of you, have been horrified to find my annual bill from Thames Water has increased to over £500 a year. Following the advice on the MoneySavingExpert's Cheaper water bills page, I applied for Thames Water's social tariff (WaterHelp), which is supposed to provide a reduced bill for those on low incomes.

After completing the form (lots of information about my income and expenditure requested), I received a reply from Thames Water, indicating that they are now setting up a new "affordable payment plan" of £22.50 per month. So far, so good.

However, the Thames Water email goes on to state the following:

The amount that you’ll be paying on your new plan doesn’t cover your charges in full, so we need to tell credit reference agencies that you have an “underfunded payment arrangement”.

This means that you won’t go into debt collection, but it might impact your credit score in the future, so it’s important that you increase the amount you pay as soon as you can afford to. 

I am, frankly, shocked and appalled that a scheme supposedly set up to help those on a low income comes with a cost, and that my credit score will be affected by asking for some relief from this company's usurous charges. I note that there is no indication on Thames Water's website that this scheme comes with negative implications, and that MoneySavingExpert's Cheaper water bills page should be highlighting this too.

Does anyone have any advice as to how I can fight this outrageous state of affairs?

QrizB

Schnauzer25 said:

I'm a single occupier in a one-bedroom flat (water meter not possible)

...

Does anyone have any advice as to how I can fight this outrageous state of affairs?

Leave the Water help scheme and ask for an assessed charge instead?

freesha

It's not hidden at all, it is on their website when you apply, and agents will tell you when you ring up.

Ashsav

Schnauzer25 said:

I'm a single occupier in a one-bedroom flat (water meter not possible), and, like many of you, have been horrified to find my annual bill from Thames Water has increased to over £500 a year. Following the advice on the MoneySavingExpert's Cheaper water bills page, I applied for Thames Water's social tariff (WaterHelp), which is supposed to provide a reduced bill for those on low incomes.

After completing the form (lots of information about my income and expenditure requested), I received a reply from Thames Water, indicating that they are now setting up a new "affordable payment plan" of £22.50 per month. So far, so good.

However, the Thames Water email goes on to state the following:

The amount that you’ll be paying on your new plan doesn’t cover your charges in full, so we need to tell credit reference agencies that you have an “underfunded payment arrangement”.

This means that you won’t go into debt collection, but it might impact your credit score in the future, so it’s important that you increase the amount you pay as soon as you can afford to. 

I am, frankly, shocked and appalled that a scheme supposedly set up to help those on a low income comes with a cost, and that my credit score will be affected by asking for some relief from this company's usurous charges. I note that there is no indication on Thames Water's website that this scheme comes with negative implications, and that MoneySavingExpert's Cheaper water bills page should be highlighting this too.

Does anyone have any advice as to how I can fight this outrageous state of affairs?

Hiya, I also applied for the Waterhelp scheme and received this email. At no point during the application did they mention that the scheme was an underpayment agreement. I’ve also not received any paperwork for this new “agreement” that I didn’t actually agree to.

The website states “Our WaterHelp scheme can help if your water bill is a large proportion of your household income. This may be due to having a high water bill due to a large family, or that you are on a low income.
We currently offer a 50% discount on your bill if you qualify. This amount may change in the future. In order to qualify, we'll need to check your details and verify your income”

I agree that this is misleading and fraudulent practice.

Ashsav

freesha said:

It's not hidden at all, it is on their website when you apply, and agents will tell you when you ring up.

If possible, could you share a screenshot of the page that explained this? I applied through the website and had to complete a very long and detailed application form about my income breakdown. I didn’t read anything about it being an underpayment agreement before, during or after completing the application, nor did I get any information in the email confirming that I had been accepted on the scheme

WaterAdvice

There are a couple of things happening here:
WaterHelp (a social tariff) won't impact your credit rating. This will lower your bill if you qualify.
What will impact your credit rating is whether you pay your bill in full or not. If you can't afford to pay your bill, at either the full rate or the discounted WaterHelp rate, then it suggests your finances are stretched and it will impact your credit rating.

The 'affordable payment plan' is set at an sustainable level that is affordable for you, based on the income and expenditure review. But is less than what you owe. Being in an arrangement like this is better for your credit rating than non payment. It will prevent your account being passed through to a debt collection organisation. 

If your financial situation improves you can then increase your payment plan to meet your bill in full.