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Concerns raised over detail of water charges concession

Finance | Vibeka Mair | 8 Mar 2010

Campaigners have asked for more clarity on the concessions on water charges for charities in the Flood Water and Management Bill.

The Bill, which looks set to get Royal Assent before the election, contains a new provision for charities to be billed “fair and affordable” water charges.

The amendment is the result of more than two years of campaigning by charities against changes to all water bills first mooted in 2008.  The water companies wanted to charge for surface water drainage according to the size of the site area instead of the rateable value of the property. This would have dramatically increased water charges for some charities, especially those likely to have large grounds, like churches or scout halls.

However, campaigners are now warning that the clause in the Bill that relates to the charity and community sector, stating that “a charges scheme...may include provision designed to reduce charges to community groups,” is not clear enough.

Stella Creasy, head of public affairs and campaigns at the Scout Association, which led the fight by charities against the increased charges, told Civil Society that “the devil was in the detail”. While the Scouts were pleased a concession was available, the wording was crucial, she said. “We need to futureproof it for the future and beyond.”

Further, Martin Dales, member of the Church of England General Synod, who set up a successful Downing Street petition against the charges, said it was encouraging that the clause was going through but he hoped concerns raised at the Bill's second reading in the House of Lords last month would be answered.

During this reading, the Bishop of Exeter warned that the relevant clause as drafted was "permissive rather than mandatory", and queried whether the word "may" was correct.

He also warned that further guidance in the Bill which asked for  "fair and affordable" charges for community groups was not well defined.

"Ofwat is charged with overseeing the concessionary schemes and making sure that water companies have regard to the guidance, but at the moment Ofwat is expected to guess at what is fair and affordable," said the Bishop. "I think that a little more work is needed in this area."

Lord Addington, from the Liberal Democrats, added: “Clause 43 is a welcome remedial step. The draft guidance hints about other things, but when will we find out what is 'fair and affordable'? We also have the old may/shall chestnut.”

Meanwhile, Conservative Lord Baroness Byford asked if there would be a review or appeal mechanism after a certain period on decisions made on water charges.

Both the Scouts and Church of England hope the concerns above will be addressed at the Committee stage of the reading in the House of Lords next week.

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Directory: The Scout Association