Water regulator Ofwat had told water companies not to offer discounts to charities on water drainage charges as it was discriminatory against other organisations. This had left many groups having to pay an extra £500 a year in water charges.
However, after lobbying by Scout groups, churches and other charities, who referred to the Ofwat guidance as a "rain tax", Environment Secretary Hilary Benn has intervened.
In a statement he has announced that the government is to bring in a new law to allow water companies to offer such discounts.
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