This paper argues that the current debate surrounding new methods of charging for water from the year 2000 should incorporate issues of social equity and must consequently involve not just the water industry but also central government and the Department of Social Security in particular. The water industry in England and Wales is currently fragmented into almost 30 separate companies, each with its own costs and prices for water services. Average water bills for domestic customers vary with company area but this variation is not wholly matched by patterns in the extent of use of the DSS direct payment scheme. In some areas people dependent for their income on means-tested social assistance benefits can face high water bills yet lack access to budgeting schemes to help with payment.