NICVA condemns water charges announcement

NICVA has written to Regional Development Minister, John Spellar, condemning this week’s announcement of domestic water charges. The new charges will be based on property values plus a fixed rate charge and will be phased in over a three year period.

The Department estimates that the average household charge is likely to be in the region of £315-415 per year, with a 25% rebate available for those on Housing Benefit or Rate Rebate.

NICVA believes this is a wholly inadequate provision for those on low incomes. The letter states: "One of our main concerns has been to ensure that those who are most vulnerable in our society are protected from costs which they cannot afford to meet.

We recommended in our consultation response that: 'If government moves to a system of direct charging NICVA believes that any such system of charging should be underpinned by the principle of social equity (ie based on ability to pay) rather than economic equity (ie users should pay the costs they individually impose on the system).' Unfortunately the arrangements announced yesterday do not meet the principle of social equity.

“The apportionment of the charges between a standing charge of £55 and a property value based element in no way considers ability to pay. The 25% discount proposed is inadequate and the charges will place an unacceptable burden on low-income families. It is perfectly feasible in areas where house prices have risen recently, such as Belfast, that a property value in the £150,000 - £200,000 range could pertain to a workless or low-wage family living in a small semi - detached house. If that family is in receipt of housing benefit, the 25% discount would amount to £128.75. This would leave a total bill of £386.25 which will be levied regardless of the income level of the family. Given that these charges will be in addition to increased rates for some, where are low income families to find the extra money? We also note that the threshold level set by the Scottish Executive in their transitional scheme is £240. Many low income families in Northern Ireland could be paying substantially more than that, as illustrated above.

“The best way to protect those on low incomes is to ensure that they do not pay a disproportionately high amount of their income on water charges. It will be unfair if the poor pay 10% of income in charges and the better off pay maybe 3% of theirs. Rather than a straight 25% discount, surely a percentage cap related to income would be more equitable. This could perhaps be fixed at 3%.”

NICVA is also asking for an explanation of the fact that responses to last year’s consultation on water charges appear to have been totally ignored in the recent decision.

Read the full text of the letter (115Kb)