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Water bill rebate

Overview

Published 5 August 2025

Water charges rebate

Norwich City Council has historically received a commission from Anglian Water for administering water charges on behalf of tenants. This arrangement has now been ruled unlawful. Case law (notably Kingston-upon-Thames v Moss, Court of Appeal, October 2020) established that councils collecting water charges in this way are not acting as agents, but as water resellers. As a result, councils are only permitted to recover a modest administration fee — £5 per property per year.

Although this arrangement had been in place since 2001, legal challenges didn’t begin until 2016. Following the 2020 ruling, Norwich City Council reviewed the commission it had received and calculated a total of approximately £1.7 million due to tenants. Despite this, the actual cost to the council of administering water payments has always exceeded the allowed recovery amount.

There are 8,000 current tenants due a rebate and an unknown number of former tenants in addition to those 8,000.  Rebates will range from a few pence to £350, depending on individual circumstances. These payments will include interest and will be credited directly to tenants’ rent accounts in batches. The exact date for payments is yet to be confirmed. Please wait for contact from us about your rebate.

Former tenants will be invited to apply for a rebate. 

As the water rebates are a complex issue we have put together some frequently asked questions with answers below: 

General background and legal context

1.    Why are tenants receiving a rebate?
The council used to collect water charges on behalf of Anglian Water as part of rent payments. A 2020 court ruling found that councils could only charge a small admin fee (£5/year per property) rather than commission. Tenants are now being refunded the difference, including interest.

2.    Why has it taken five years to pay the rebates?
Due to the complexity of the task, including calculating individual rebates for around 8,000 tenants with varying tenancy lengths and interest adjustments.

Rebate calculations and amounts

3.    How much is owed to tenants?
Most will receive between 9p and £350, including compound interest.

4.    What is the total bill to Norwich City Council?
Approximately £1.7 million.

5.    How is the rebate calculated?

  • Water charges paid since April 2013 were reviewed.
  • Commission received beyond the £5/year admin fee was calculated.
  • Compound interest (double the Bank of England rate) was applied.
  • Example calculations are available for transparency. 

6.    Will interest be added to the rebate?
Yes, compound interest based on Bank of England rates is included

Payment process and logistics

8.    When will payments be made?
Rebates will be processed in batches over the coming months, with completion expected by end of 2025.

9.    How will the rebate be paid?
Initially, rebates will be credited to rent accounts to simplify logistics and reduce transaction costs.

10.    Can the rebate be paid to my bank account instead of my rent account?
    If the rebate creates a credit, tenants can:

  • Take a short rent payment break until the credit is used.
  • Request a refund to their bank account.

    Direct Debit payers can request an adjustment or refund.

11.    What if my rent is fully covered by Housing Benefit?
If a credit is created, tenants can apply for a refund to their bank account.

Eligibility and special cases

12.    Can former tenants claim a rebate?
Yes, arrangements are in place for ex-tenants to apply via a simple online form (with ID verification). NOT CURRENTLY LIVE.

13.    I’ve just bought my home through Right to Buy - am I still entitled?
Yes, if water charges were paid via Norwich City Council since 2013, former tenants can apply for a rebate.

14.    I pay water charges directly to Anglian Water - will I get a rebate?
Only if you previously paid water rates through Norwich City Council (since 2013) and the commission exceeded the £5 admin fee.

Future changes to water billing

15.    What’s changing with water bills from April 2026?

  • Norwich City Council will stop collecting water charges.
  • Tenants must set up direct payments with Anglian Water.
  • Switching to a water meter may lead to savings.

For info on switching visit www.anglianwater.co.uk/metering 

16.    Can I switch to direct billing earlier?
Yes, tenants can choose to switch before April 2026 if preferred. But can’t go onto direct billing with Anglian Water unless they have a water meter fitted.  If they are paying water rates, then they will have to stay with Norwich City Council until April 2026. 

Financial and operational impact

17.    Where will the £1.7 million rebate money come from?
The Housing Revenue Account will cover the costs. Other Norwich City Council services will be unaffected by the rebates.

18.    Will this affect my rent or tenancy?
No, this is a one-off correction and does not impact rent or tenancy rights.

Support and contact information

19.    Who can tenants contact with questions?

20.    See webpage with recent letter to tenants www.norwich.gov.uk/WaterRebate. 

21.    Will the refund have an effect on my benefits?
We would recommend that you seek advice from the Housing Benefit department or the Department of Work and Pensions on the impact to your benefits.

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