Committee publication · Correspondence · 6 March 2026
Correspondence from United Utilities regarding debt collection practices, dated 5 January 2026
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
United Utilities responds to the Environment, Food and Rural Affairs Committee's inquiry into water company debt collection practices. The company details its approach to balancing support for vulnerable customers—including a £525m affordability package targeting 1 in 6 customers—with enforcement action against those able but unwilling to pay. It reports enforcement cases represent 0.3% of its customer base, has never sought Suspended Committal Orders, and received a Green rating from the Consumer Council for Water's debt audit in October 2025.
Key findings
- £525m affordability support package for AMP8 (2025/26–2029/30), with £200m shareholder-funded; aims to support 1 in 6 customers by 2029/30.
- Enforcement cases represent 0.3% or less of billable customer base annually; 76% of cases March 2019–December 2025 involved debts under £1,000.
- United Utilities has never sought Suspended Committal Orders (SCOs); policy is not to take court action against Priority Services Register 'core' customers.
- Typical customer receives 10 letters, 18 emails/texts, and 7+ automated calls over 200+ days before enforcement considered; customers are manually screened and action paused on vulnerability notification.
- Requests government action on three fronts: implement national social tariff; amend data-sharing restrictions in paragraph 17IA of Water Supply and Sewerage Services (Customer Service Standards) (Amendment) Regulations 2025; review DWP benefit deduction hierarchy affecting water arrears.
Tone
SupportiveTopics
Key actors
United Utilities Water Limited, Alistair Carmichael MP, Environment, Food and Rural Affairs Committee, Ofwat, Consumer Council for Water, Department for Work and Pensions, Chartered Institute of Credit Management, Louise Beardmore
Notable line
“… enforcement is used proportionately and only when warranted. Typically 6 , before a case reaches final enforcement action, customers will have received 10 letters …”
Key Quotes
“We welcome the Committee's focus on affordability, water poverty and the support available to households at risk.”
“Each year the total number of enforcement cases represents 0.3% or less of the United Utilities billable customer base.”
“It is our policy not to take court action against Priority Services Register (PSR) "core" customers .”
“Vulnerability is assessed repeatedly throughout the collections process and informs our decision making.”
“We only take court action to enforce judgements against those customers that we believe have the financial resources to pay their bill, and only then after significant efforts have been made to meaningfully engage customers in positive payment behaviours.”
“A new National Social Tariff is needed to end the postcode lottery of support by providing a minimum level of support to all qualifying households across the country.”
“Understanding customers ' current financial position is critical to enabling water companies to identify emerging arrears early, and to act to prevent customers from falling deeper into debt.”
Source · parliament.uk record ↗