Emma urged the Government to do more to help customers with the cost of water in the House of Commons today, as she spoke in a debate on the Water Bill currently going through Parliament.
The Bill covers issues ranging from flood management to environmental regulation, but Labour MPs want it to include new laws to make water bills more affordable for the poorest households.
Emma told the House:
“I and my colleagues in the Labour party have been campaigning hard on energy prices, but the situation with water bills is no better—indeed, some would say that it is worse..
“While households spend less on water as a flat figure, the proportion of a bill that goes towards company profits is actually three times higher than for an energy bill. And like with energy prices, the rising cost of water far outstrips both earnings and inflation.
“Water is a natural resource; it is essentially free; and it is essential for our survival. Management of that natural resource therefore needs to be conducted with some kind of social responsibility.”
You can read Emma’s speech in full by clicking here.
Labour wants to establish a national affordability scheme to keep water bills within the budget of ordinary households. Since water was privatised in 1989, bills have risen by more than 50% above inflation.
Labour would also make water companies publish detailed information on their finances and tax structures, and give the water regulator Ofwat stronger powers to stand up for consumers, including the power to order an immediate review of the current five-year price agreements.
Regional water companies made £1.9 billion in pre-tax profit last year, with £1.8 billion being paid in shareholder dividends rather than invested back into infrastructure.
Speaking after the debate, Emma said:
“Water Bills don’t always make the headlines but are an important part of the cost of living crisis. Nearly one pound in three people spend on their water bills is pure profit for suppliers, and that is unacceptable during a time when people are being forced to cut back on essentials.
“The Water Bill is an ideal opportunity for the Government to help consumers with their bills. But despite successive Environment Secretaries and the Prime Minister himself saying something would be done, the Government has not acted. That’s why I wanted to speak out and highlight how soaring water bills are hurting my constituents, and urging the Government to help.”
Emma will sit on the Public Bill Committee for the Bill, and together with fellow Labour MPs will press for amendments to help make water markets fairer for consumers.