New rules mean customers will automatically receive more money for issues such as continued low water pressure and cancelled appointments. The new compensation rules were announced in December 2024 and come into effect today (2 July).
The standards, outlined in the Guaranteed Standards Scheme, set out a baseline for customer service in the water sector. They include providing timely restoration of water supply following an interruption, responding to written complaints and managing the risk of sewer flooding.
Severe issues such as flooding will see customer compensation double from £1,000 to up to £2,000. Households suffering consistent low water pressure will be automatically eligible to receive up to £250 – a huge uplift from the previous compensation rate of just £25. The payments should be made automatically to affected customers.
Steve Reed, Environment Secretary, said: “Too many water companies are letting down their customers – with leaking pipes, poor water supply and low water pressure.
“The Government is holding water companies to account by making them put money back into people’s pockets when they fail their customers.”
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The Government is also working with water companies to expand the list of circumstances that will trigger compensation payments. Compensation for when customers are asked to boil their water due to contaminated supply will come into force later this year.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “Customers expect to be treated fairly when their water company lets them down, so we’re delighted the Government has moved at pace to strengthen service standards.
“This should give people peace of mind they now have far stronger protection from a much broader range of water company service failures – from the slow installation of water meters to the mishandling of debt recovery. As well as bolstering payments for thousands of customers, these changes mark an important step towards restoring trust in the water sector, which is at an all-time low.”
Thames Water, in particular, has been repeatedly criticised for poor service levels, regular leaks, and not paying compensation where due.
