Water services - investing in and paying from 2027: consultation

Annex 1

Reductions to apply to water and sewerage charges at unmetered Households

1. Ministers confirm that during the 2027-33 period the following provisions will apply to ensure that a maximum of 35% discount may be applied to water and sewerage charges under the Water Charges Reduction Scheme either directly or in combination with other discounts.

The Water Charges Reduction Scheme (WCRS)

2. Reductions to water and sewerage charges at unmetered dwellings should apply in relation to dwellings (where "dwelling" has the same meaning as in part II of the Local Government Finance Act 1992) where all the following circumstances apply:

a. A person is liable to pay water and/or sewerage charges under a charges scheme;

b. Council Tax Reduction (CTR) applies; and

c. The dwelling in respect of which the charges are payable is not one to which the Council Tax (Discount for Unoccupied Dwellings) (Scotland) Regulations 2005 apply.

3. The following formula should be used to calculate the level of reduction for which that dwelling is eligible:

R = (35 × (A / B)) - D

Where:

Unless R < 0, R is the percentage WCRS reduction to be applied to W (defined below) in addition to Council Tax discounts that are also applied to water and sewerage charges.

A is the amount of CTR (£s) which a person receives in respect to that dwelling in that period.

B is the net council tax prior to the application of CTR (£s) for which that person is liable in respect to that dwelling in that period (i.e. after discounts and disabled relief but before the application of CTR).

D is the level of discount (expressed as a number) awarded against the Council Tax liability for the dwelling for which that person is liable in respect to that dwelling in that period.

W is the water and sewerage charge, prior to the application of discounts and reductions, in respect of that dwelling in that period for which the person would be liable if there were no discounts or reductions.