Citizens Advice Scotland finds income is the best indicator of affordability

A report from Citizens Advice Scotland to support water suppliers in crafting their affordability policies more appropriately includes the conclusion that income is the best indicator of a household's view of affordability.

The paper – Charting a new course: a study in developing affordability policy for water and sewerage charges – looks at the characteristics that may indicate whether a household will struggle with water and sewerage bills. It also provides an analysis of various proxies that could be used to determine affordability, and at how additional financial support could be targeted towards households that need it most.

The report found:

· income is the most accurate indicator of whether or not a household is likely to find water and sewerage charges affordable;

· the current proxy used in Scotland to provide financial relief, based on households being in receipt of Council Tax reduction, is the most effective one that exists. However, difficulties around more closely linking systems and datasets means that some households in need of additional support do not receive it; and

· 12% of households in Scotland spend more than 3% of their weekly income on their water and sewerage charges although not all receive additional financial support through available affordability mechanism.

CAS added that in the longer term, further research is necessary to identify how support could be more effectively targeted to all households that may struggle to pay.