Water bills set to fall by 4% per year

6th February 2020

Average household water bills in England and Wales will be cut by around £17 (4%) in 2020/21 according to industry trade body Water UK. The average annual bill will decrease from £413.33 to £396.60, although there will be variations from company to company. It means customers will continue to pay around £1 a day for water,  The new rates have been announced after regulator Ofwat had told water firms to invest more in improving services between 2020 and 2025.

As well as a reduction in average bills, there is also going to be more help for customers who find it difficult to pay. Water companies plan to almost double the number of people getting help with their bills every year, up from 760,000 customers now to at least 1.4 million by 2025.

Commenting on the new figures, Water UK Chief Executive Christine McGourty said “The water industry is committed to giving customers good value for money. For around £1 a day, customers get the world-class quality water they need and their wastewater managed responsibly.”

“Companies are also committed to investing for the future and protecting the environment, with an ambitious goal to achieve net zero carbon emissions for the sector by 2030. And companies are increasing the assistance available for customers who need it most. The number of people getting help to pay their water bills will almost double, whether that’s through reduced tariffs or targeted support.”

Help for customers who find it difficult to pay their bills takes a number of forms. One route is through social tariffs, which are special discounts for people on a low income or receiving specific benefits. Each company has its own support scheme, and some also run or assist charities which provide additional help. Help available includes the WaterSure scheme, which enables water companies to cap bills for low income customers who use a lot of water for essential family or health reasons.”

The average bill reductions come at the start of the next 5-year business cycle for water companies. As well as planning to cut bills in real terms during the 2020-2025 period, the companies intend to spend at least £1 billion a year making substantial environmental enhancements. The plans include improving 7,500 miles of rivers and carrying out work as part of the industry’s commitment to achieve net zero carbon emissions by 2030.

Andy White,  Consumer Council for Water’s Senior Policy Manager, said “Many households don’t feel they get a fair deal from their water company but over the next five years customers are set to receive more for their money – and we want them to take full advantage.”

“There are still millions of households who could tap into savings by switching to a meter or cut their bills if they’re on a low income by signing up to their company’s social tariff.”