Martin Lewis’ MSE issues ‘check now’ alert to claim £2,000 compensation | Personal Finance | Finance

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Martin Lewis’ MoneySavingExpert (MSE) website has urged households in England to check if they could be owed up to £2,000 in compensation from their water company. The website explained that many people may be entitled to payouts for poor service, including supply disruption, low water pressure or sewer flooding.

The biggest payouts will go to those affected by serious issues like flooding, with households able to claim as much as £2,000. People who have been dealing with low water pressure for a long time could get up to £250. Payments will be automatically credited to customers’ water accounts and come as part of the first rise in compensation levels in 25 years, according to the Department for Environment, Food and Rural Affairs (Defra).

From October 2025, the government will also expand the list of reasons that can trigger compensation.

For example, if you are told to boil water because the supply is contaminated, you will be entitled to £40, plus £20 for each 24 hours that the warning remains in place.

The maximum compensation will be capped at the level of your annual water bill, not including sewerage charges, The Mirror reported.

MSE says: « The changes are being introduced under mandatory new rules to be enforced by the Department for Environment, Food and Rural Affairs (Defra).

« Until now, guidelines on compensation payouts in England had been voluntary. These had been in place since 2000 and were monitored by water regulator Ofwat. »

Environment Secretary Steve Reed added: “Too many water companies are letting down their customers, with leaking pipes, poor water supply and low water pressure.

“The Government is holding water companies to account by making them put money back into people’s pockets when they fail their customers.”

Mike Keil, chief executive of the Consumer Council for Water (CCW), welcomed the new rules, saying: “Customers expect to be treated fairly when their water company lets them down, so we’re delighted the Government has moved at pace to strengthen service standards.

“This should give people peace of mind; they now have far stronger protection from a much broader range of water company service failures, from the slow installation of water meters to the mishandling of debt recovery.

“As well as bolstering payments for thousands of customers, these changes mark an important step towards restoring trust in the water sector which is at an all-time low.”

Ofwat chief executive David Black added: “We welcome these improvements to guaranteed standards and payments for customers.

“When customers suffer from problems like low pressure, disruptions to supply or sewer flooding, they can experience major stress and inconvenience, and payment amounts must recognise the disruption to their lives when standards are not met.

“These new changes are another way to make sure customers are protected when companies get it wrong.”