Martin Lewis’ MSE issues £2,000 compensation alert to UK households

By Christian Abbott

Martin Lewis’ Money Saving Expert (MSE) team has issued advice on how UK households can claim £2,000 in compensation from their water supplier from today. The reasons for the compensation vary, from poor service to major flooding, with payouts ranging from £250 for low water pressure all the way up to £2,000. The Department for Environment, Food and Rural Affairs (Defra) said it is the first increase in compensation rates in 25 years, with the payments being automatically added to accounts. Read more: Certain state pensioners born before 1959 warned as HMRC to take back £300 The list of circumstances that will trigger compensation payments will increase in October of this year, Defra has stated. MSE said: “The changes are being introduced under mandatory new rules to be enforced by the Department for Environment, Food and Rural Affairs (Defra). “Until now, guidelines on compensation payouts in England had been voluntary. These had been in place since 2000 and were monitored by water regulator Ofwat.” Environment Secretary Steve Reed 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.” Mike Keil, the 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.” Ofwat chief executive David Black said: “’We welcome these improvements to guaranteed standards and payments for customers. “When customers suffer from problems like low pressure, disruptions to supply or sewer flooding, they can experience major stress and inconvenience, and payment amounts must recognise the disruption to their lives when standards are not met. “These new changes are another way to make sure customers are protected when companies get it wrong.”

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