Further action needs to be taken to address water charges in the South West

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Dan Rogerson MP calls on the government to do more to help those who are impacted by the high water prices in the South West.

This week, ahead of the chancellor's Autumn Statement, details of a Water Bills Rebate Fund were announced, with a £50 rebate to be provided on water bills for households in Cornwall and other South West water areas from 2013-14. As a Liberal Democrat, I have long campaigned on getting a fair deal for bill payers in Cornwall after the botched privatisation under the Conservatives in the 1980s left us with the highest water bills in the country, and following 13 years of complacency about the issue under the last Labour government; as such, this rebate is fantastic news and it is great to see the coalition's commitment to act being delivered.

Since the privatisation of water in the 80s, bill payers in the South West Water region – which includes Cornwall, Devon and parts of Somerset and Dorset – have had to pay the highest water charges in the country, with annual bills being around £150 more than the national average, at £517. Bills are so high because the way water was privatised meant that people in the South West are responsible for maintaining 30 per cent of the combined coastline of England and Cornwall, despite only making up three per cent of the population.

After many years of campaigning, and with the Liberal Democrats in government, the coalition committed to finally developing a solution to this long-running problem. In the Budget statement back in March this year, it was announced that ministers would deliver on their promise to act, and an annual sum was set aside for a Water Bill Relief Fund. This week's announcement will be worth £35m annually, with around 700,000 households benefiting. The cut cannot come in before the 2013-14 date as it requires primary legislation to be passed by Parliament in order for it to happen.

I welcome the straightforward and sensible use of the money that was set aside by the Treasury earlier this year to offset the very high costs of water bills in Cornwall, as well as in Devon and parts of Somerset and Dorset; but during the Westminster Hall debate on Wednesday I will be calling for more to be done to help ease the burden on families.

I hope that ministers will understand that whilst the £50 rebate is certainly a step in the right direction, there is further to go to fully address the problem by helping the poorest customers and making sure water charges are fairer across the whole country.

There are other ways of helping the very worst-off manage their water bills – notably social tariffs such as the WaterSure scheme which delivers a capped charge for those on the lowest incomes within water company regions. It is essential that these schemes are delivered in a fair and sustainable way, ensuring that people who are just above the threshold for help from WaterSure, but who are still struggling with astronomical bills, do not end up losing their help with bills in order to fund social tariffs for the very poorest.

One such option I am keen to see explored is to move from regional schemes to support those on the lowest incomes, to a national scheme linked to average national bills – thus providing support for those in water poverty wherever they are in the country. For Cornwall, this would ensure that those who will still be paying hugely above-average bills – even with the £50 rebate – would still receive much-needed support.

Dan Rogersonhas been the Liberal Democrat Member of Parliament for North Cornwall since 2005. He has been a member of the Select Committee on Environment, Food and Rural Affairs since 2005.