A new targeted study with consumers struggling to pay their water bills and experts in water policy and debt recovery has highlighted a range of concerns.
The research found a minority of participants were able to engage early with their local authority and agree a repayment plan.
However, more commonly local authorities passed debt cases to external debt collection agencies or Sheriff Officers, often with no notification.
That meant consumers seeking resolution were no longer able to engage directly with their local authority.
Instead, they experienced summary warrants and enforcement action such as wage arrestment or home visits by representatives of debt collection agencies or Sheriff Officers.
Participants described communication as unclear and often overly legalistic and they experienced feelings of stress, shame and embarrassment, which in some cases prevented them from seeking help.
Previous research found around one in five households were in water debt, with low-income households disproportionately affected.
Consumer Scotland has identified potential measures to improve the system including:
- Earlier and more supportive engagement with consumers experiencing payment
difficulties - Early affordability assessments before debt recovery action is taken and adjustments when household income changes
- Greater flexibility in repayment arrangements based on ability to pay
- Reviews of debt recovery processes to reduce unnecessary escalation
- Enhanced training for council and debt recovery staff to support clear, empathetic communication
- Improved access to money and debt advice
Consumer Scotland Head of Water Gail Walker said:
“Our research shows that many people who fall into water debt are often facing wider affordability challenges and they tend to prioritise other essential household costs such as rent, energy and food.
“Consumers told us they also have little distinction between water debt and Council Tax debt, largely because the charges are billed and collected together.
“As a result, households receiving 100% Council Tax Reduction may ignore notifications and reminders from their local authority, assuming they are exempt from all charges which can lead to arrears on water charges.
"We will now work with local authorities, advice providers, debt advisers and charities across Scotland to explore how these issues can be addressed and how outcomes for consumers can be improved."
Those who took part in the survey also want to see better alignment between water and sewerage charges and Council Tax reduction arrangements, which are currently confusing for some consumers.
In Scotland, domestic water and sewerage charges are collected through the Council Tax system rather than billed directly by Scottish Water and charges are based on Council Tax band rather than water use.
Even those in receipt of 100% of deduction of Council Tax are liable to pay a proportion of water charges.
Background
Interim findings: Understanding the experience of consumers in water debt
The research involved interviews with experts working in water policy and debt, focus groups with advisers supporting people affected by water debt and in-depth interviews with a small group of consumers who had experienced water debt. The final stage brought consumers,
advisers and stakeholders together to develop proposals for improving outcomes.
Consumer Scotland commissioned Thinks Insight & Strategy to undertake qualitative research on the lived experience of domestic water and sewerage debt in Scotland.