The Scottish Government has launched a public consultation on how water and wastewater services should be invested in and paid for from 2027 onwards: Water Services: Investing In and Paying from 2027 Consultation. This consultation is particularly relevant to charities, community organisations and community amateur sports clubs (CASCs), as it includes proposals that directly affect eligibility for the Water Charges Exemption Scheme.

Ministers aim to maintain the current income thresholds for exemption:

100% exemption for organisations with an annual income up to £200,000
50% exemption for organisations with an annual income up to £300,000
(there are some exceptions to this general exemption)

These thresholds have not changed in several years, despite rising operational costs across the third sector. The Government is therefore inviting views on whether the current criteria remain fit for purpose and how the scheme can best support financially pressured organisations delivering vital community services.

For charities, development trusts, community cafés, heritage groups, sports clubs and other non‑profits, this consultation offers an important opportunity to highlight how water charges impact day‑to‑day sustainability. Organisations may wish to consider:

Whether the existing income thresholds adequately reflect today’s economic pressures
How the exemption scheme supports community facilities and essential local services
Whether different forms of support or updated criteria would better meet sector needs

Third sector organisations are strongly encouraged to respond, drawing on the lived experience of the communities and facilities they support.

For further information, and to complete the consultation, please visit the Scottish Government website (linked for your convenience).