Water giant offers support to customers after posting £261.7m half-year profits
Severn Trent profits have risen – but the company says it is doing all it can to help customers with bills during the cost-of-living crisis...
WATER group Severn Trent says it has ramped up support for financially struggling customers – as it posted a hike in half-year earnings.
The firm said it has changed the income threshold for its support package to allow more customers to access savings of up to 90 per cent on their water bills in the face of surging inflation.
Severn Trent unveiled a £30 million fund in May to help another 100,000 customers on low incomes, adding to its existing scheme that supports 215,000 customers in need.
It said 20,000 customers had already applied for the extra support, but that it has now increased the annual income cut-off to just under £19,000 from £16,000 to allow more people to access the scheme.
It also announced a programme to give 300 children work experience by the end of next August, rising to 500 by 2032.
The group – the UK’S secondbiggest water firm – will also give 10,000 hours of free skills and employability training in communities and schools to support people into their first job, or back into work throughout the Midlands.
It said the scheme – run in partnership with Birmingham City Council – would aim to help 100,000 people out of poverty by 2032 by supporting them into employment.
The details came as Severn Trent posted a 2.4% rise in underlying pre-tax profits to £261.7 million as turnover rose 10.8% to £1.1 billion thanks in part to inflation-linked hikes in water tariffs.
But it also revealed the impact of surging energy prices, with costs soaring by 75.3% to £41.1 million in the first half – although it pointed out this was less than the 121% hike in wholesale costs.
Severn Trent said it has not yet seen an increase in customers falling behind with repayments, with bad debts down by £1.6 million, but it said it was retaining £8.5 million in money set aside to cover defaults due to the ‘expected pressure on household budgets from cost of living increases’.
The firm serves 4.8 million homes and businesses in England and Wales, including Staffordshire.
Liv Garfield, chief executive of Severn Trent, said: “The first half of this year has shown the benefits of the sustained investment we’ve made over many years in our people, region and environment. As well as delivering on our operational and environmental commitments, with around 85% of regulatory measures meeting or exceeding targets, we’re also committed to making a long-lasting positive impact in communities we serve.”