Overview

• Compensation under the Guaranteed Standards Scheme rose tenfold from July 2, with low water pressure payouts increasing from £25 to £250 and internal sewer flooding awards doubling to £2,000.
• Eligible customers no longer need to submit claims as payments are automatically credited to their accounts.
• Defra is working with water firms to broaden qualifying events later this year, including automatic compensation for boil-water notices.
• This marks the first increase in water service compensation in 25 years, introduced to bring payouts in line with inflation and address chronic service failures.
• The reform comes alongside tougher oversight measures including two-year prison sentences for polluting executives, bans on unfair bonuses and 81 ongoing criminal investigations into sewage pollution.