A water company will be giving thousands of “vulnerable households” discounts on bills during the cost-of-living crisis.

Southern Water said it will be increasing bill discounts from 20 per cent to 45 per cent to 125,000 households as part of a £98 million package of support.

This will equate to an average £200 saving for people’s dual service bill.

Southern Water is also handing out 20 grants of £1,000 to community centres and foodbanks to help them stay open.

Katy Taylor, chief customer officer at Southern Water, said: “While Christmas excitement may be growing for many families in our region, we know that there will be lots who are worried about how they will afford it and also pay for their heating and other bills.  

“As water is an essential service that people cannot live without, we believe it is critical that we support thousands of vulnerable households in our region who need a break.   

“Our customers live in the same communities as our colleagues and their families, people we speak to and serve every day.

"We are in an extremely fortunate position where we can help, which is why we have put together a package worth £98m to support customers who need help, until 2025.  

The Argus: The package of support is worth £98 million. Pictured is Southern Water attending a leak in JanuaryThe package of support is worth £98 million. Pictured is Southern Water attending a leak in January (Image: Newsquest)

“I would urge anyone who needs help to reach out and we will do everything we can to support you.”  

Southern Water is also in contact with citizen advice hubs, job centres and food banks to help people struggling financially.

The support package covers households in Sussex, Kent, Hampshire and the Isle of Wight.

Michael Barnes, policy manager at the Consumer Council for Water, said: “This will be a tough winter financially for many households so we’re really pleased to see Southern Water stepping up its efforts to help customers who are currently struggling to pay their water bill. 

Southern Water confirmed the support package is not related to the £28.3 million that it must reimburse to customers following its poor performance in the latest Ofwat annual report.

Bill discounts will be applied to customers who apply by April next year.