Shropshire water supplier Severn Trent has announced a £30 million fund to help customers who are struggling with the cost-of-living crisis.

The firm said it has changed the income threshold for its support package to allow more customers to access savings of up to 90% on their water bills in the face of surging inflation.

20,000 customers have already applied for the extra support and now Severn Trent has increased the eligibility threshold – meaning customers earning £18,300 or less will be able to access the scheme.

Severn Trent unveiled the fund which aims to help an extra 100,000 customers on low incomes on top to its existing scheme that supports 215,000 customers in need.

The details came as Severn Trent posted a rise in profits to £261.7 million on turnover of £1.1 billion due to inflation-linked hikes in water tariffs.

Severn Trent said it was also retaining £8.5 million in money set aside to cover defaults due to the “expected pressure on household budgets from cost-of-living increases”.

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Liv Garfield, chief executive of Severn Trent, said: “What we’re finding is that because we’re looking to help people before they get into bad debt, we’re not seeing bad debts increase – we’re catching it early enough.”

Severn Trent has also said it has been able to keep bills down after it hit targets in areas such as water supply interruptions, pollution incidents and internal sewer flooding – meaning almost £150 million will be taken off their customers’ water bills.

The company also announced a programme to help address poverty across the Midlands, which will see it offer work experience to 300 children by the end of next August.

It said the scheme – run in partnership with Birmingham City Council – would aim to help 100,000 people out of poverty by 2032 by supporting them into employment

Ms Garfield added: “As well as delivering on our operational and environmental commitments, with around 85% of regulatory measures meeting or exceeding targets, we’re also committed to making a long-lasting positive impact in the communities we serve.”