Plans to open up water regulations and allow firms to offer vulnerable customers lower bills are “vital”, according to consumer body the Consumer Council for Water (CCWater).

Today Defra brought out guidelines for water firms to introduce new “social tariffs” for poorer households.

CCWater said in statement: “It is vital that help is made available to customers at a time when many are facing significant financial pressures and struggling to meet household bills. Social tariffs can now play a role in helping these low income households.”

The “milestone” guidelines were hailed as “a long-awaited step” by Water UK, the body which represents the industry.

Firms say they are waiting on the Government’s lead before bringing out any firm plans.

Thames Water, which serves 8 million customers in the Thames Valley said: “We’ve previously argued in favour of the principle of a social tariff to support our most disadvantaged customers but we’ll wait to see the detail of the Government’s proposals before making any further comments.”