Households in England will be compensated up to 2,000 for service failures in the water sector due to new government reforms. Compensation payments from water firms will increase tenfold from July 2, marking the first rise in 25 years. Severe issues like flooding will see compensation double, and consistent low water pressure will qualify households for increased automatic payments. Payments will be credited to eligible customers' accounts immediately, addressing public anger regarding the water sector's degraded state.
Households in England will be paid up to 2,000 in compensation for water service failures as part of new efforts to reform the sector. The government announced that compensation payments from water firms will increase tenfold from July 2, marking the first increase in 25 years in recognition of the urgent need to bring payments in line with inflation and properly compensate households for poor service.
Severe issues such as flooding will see customer compensation double from 1,000 to up to 2,000, while households suffering consistent low water pressure will be automatically eligible to receive up to 250, up from the previous compensation rate of 25.
Payments will automatically be credited to the accounts of eligible customers with immediate effect. The announcement comes as the government attempts to grapple with the problems engulfing the water sector in the face of high public anger over the degraded and polluted state.
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