Water bills to rise by 7.5%

The annual bill for an average household in England and Wales will hit £448, industry body Water UK has said.

The 7.5% increase means customers will mean that bills will rise by an average of £31 to £448 a year.

It has also been announced that support for low-income households will also be increased to its highest level ever. More than 1 million households already receive help with water bills, which is being increased to 1.2 million over coming months.

Specific bill changes operate according to a formula agreed with Ofwat, the independent regulator. Although companies have absorbed as much cost as possible, this year’s change particularly reflects the inflationary impact of higher energy costs, with water companies using around 2% of the nation’s electricity.

Money from bills allows the industry to invest. Water companies are set to build on what is already the highest-ever level of investment in the English water sector with a further £70 billon to eliminate harm from storm overflows, transform rivers and seas, and increase water supplies by building new reservoirs and national water transfer schemes – for example to bring water from the north to the south of England using refurbished canals. This will be a critical part of the nation’s response to future drought and climate change.

Since the water industry was privatised, more than £190 billion has been invested improving services and enhancing the environment. This has resulted in customers being five times less likely to suffer from supply interruptions, eight times less likely to suffer from sewer flooding and 100 times less likely to have low water pressure.

Water UK says companies are acutely aware of the impact of price rises on lower income and vulnerable customers. That is why companies have recently increased the level of support they offer by more than £200 million, which will help hundreds of thousands more households.This builds on the more than 1 million customers that already receive reduced bills – itself the biggest level of support ever offered by the industry – as well as the unprecedented help given to customers during the Covid-19 pandemic, when more than 100,000 payment breaks were approved.

Targeted support is also available for low-income customers who use a lot of water for essential family or health reasons through the WaterSure scheme. And, more broadly, a wide range of assistance (not just financial) is available through the Priority Services Register for a wide range of people, from those with sight, hearing, or mobility difficulties, to parents with babies under 12 months old.

Stuart Colville, Water UK Director of Policy, said “With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill. However, we know that any increase is unwelcome, particularly at the moment.”

“That is why companies are also releasing an extra £200 million to help those that may be struggling. Anyone with worries should contact their water company or go to supportontap.org for advice, and it’s worth remembering that water companies will never cut anyone off, or make them use a prepayment meter.”

“Next year’s bills will support what is already the highest level of investment on record, with a further £70 billion set to be spent over coming years on building new reservoirs and ending overflows into rivers.”

Ofwat Chief Executive, David Black, said: “We know times are tough and customers who are already struggling will be worried if they see their water bill increase, so companies should be doubling down to support those who need a helping hand. Kind words don’t mean anything unless they are backed up by action, which is why we were pleased to see the recent increase in support.”