A £50 discount for South West Water customers is to be removed.

The decision by Emma Hardy, Minister for Water and Flooding, was announced in a debate on November 6.

She said: “The Government are fixing the foundations to put public finances on a sustainable path to restore stability and taking difficult decisions on tax, welfare and spending.”

The minister added that this included addressing the taxpayer-funded contribution to the water and sewage bills of South West Water.

The rebate was introduced in 2013 as customers in the the South West faced significantly higher water bills than in other regions due to the level of investment being made into the infrastructure.

The minister said that that difference in bills had decreased over the last decade and that Water Services Regulation Authority, Ofwat’s latest projections showed that in the next period review (2025 to 2029) South West Water customer bills would be similar to those in other areas.

She continued that the Government is committed to taking action to address water poverty and help vulnerable customers with their water bills.

She said: “We expect all water companies to proactively engage with their customers to ensure that they know what support schemes are available and how to use them.”

South West Water, part of the Pennon Group, supplies water to 1.7 million customers in the South West. The company confirmed that the discount would be removed from bills sent out for the year beginning April 1 2025.  

In a statement, the company said: “This government contribution was originally introduced in 2013, in recognition of the unique circumstances faced by our region where three per cent of the nation’s population live, but where we look after one third of the country’s coastline.

“The £50 contribution has been an important step to ensure bills remain manageable for customers who help fund this essential coastal protection for the entire country.

“We're here for our customers, with a £200m support package, doubling down on our pledge to eradicate water poverty to 2030 and one of a handful of water companies doing so.

“We have driven efficiencies to drive down bill levels, with bills lower today than they were ten years ago.  We have also delivered £100m of support to customers who have affordability issues in this regulatory period.

“£200m is set aside to support customers as part of our 2025-2030 plan as we invest £2.8bn in the region.”

MP for Torridge and Tavistock, Sir Geoffrey Cox, said: “This is yet another betrayal of the South West by the Labour Government. Through this substantial subsidy, which Conservative MPs secured in 2013, the Conservative Government recognised the inherent unfairness of the smallest population of any region having to pay for cleaning up the largest coastline in England, which is enjoyed by millions of tourists every year.

“The removal of this essential support will cause bills to rise steeply, including the very people from whom they have confiscated the winter fuel allowance.

“Within a few short months of the election, Labour is proving it has no interest and no concern for the rural and coastal communities of the South West.”