Average water bills set to rise by 1.7%

Water UK has announced that water bills are set to rise from April, adding to the cost of living crisis due to hit households across the country.

As water companies issue customers’ water bills for next year, showing an average increase of 1.7%, or about £7, Ofwat has called on water companies to make providing support for customers struggling to pay a top priority.

While overall water bills are a real-term cut, as they are below inflation, there is variation across England and Wales and some customers’ bills will reduce by 6% while others will increase by 10%.

Ofwat has challenged companies to do more to help customers and in particular to help those struggling to afford bills.

David Black, Ofwat interim Chief Executive, said “Many households are worried about their bills, and we expect water companies to play their part in supporting customers. Our research shows that only 15% of customers know about the financial help available to them, and just 3% are actually getting financial support from their water company.”

“Those who are struggling need to know that there is help available.  Offering a helping hand to those who need it must be a top priority for water companies and we want to see them being proactive, creative and supportive for their customers. If customers are worried, they should talk to their water company, affordability charities, or CCW.”

“But this isn’t just about the bills. Companies need to demonstrate they are providing great value with excellent service to customers while at the same time caring for our environment, responding to the real concern about their impact on our rivers. Customers are looking for more from their water company and they should rise to meet those expectations.”

Separate research by the Consumer Council for Water (CCW) says only one in four customers are aware water companies have schemes that can reduce the water bills of low-income customers. This is at a time when many households are being impacted by the cost of living crisis – compounded by yesterday’s confirmation of another sharp rise in energy bills.

CCW is urging customers to soak up its money-saving advice and seek support from their water company if they are worried about their bill.

Emma Clancy, Chief Executive CCW – the voice for water consumers, said “Any increase in water bills will be unwelcome for the millions of households already buckling under the pressure of other rising costs. Covid-19 has also made it even harder for people to anticipate how much water they will use at home – that’s why it’s vital customers take advantage of untapped support.”

“Some households could potentially save hundreds of pounds by switching to a water meter, while others on a low income may be eligible for water companies’ wide range of assistance schemes. Simple steps to reduce your hot water use could also take some of the heat out of rising energy costs.”

Jess Cook, who leads the water poverty programme for National Energy Action (NEA), said “With the rate of inflation rising, a rise in water bills was expected, but that doesn’t make it any easier to take. Following yesterday’s announcement of a 54% rise in the energy price cap, millions of households are worried about how they will cope in just two months’ time, and this is just making the problem harder.”

“We know from previous research that up to 41% of those struggling the most would bathe less, and almost a quarter would cut back on food or personal hygiene products, in order to reduce, or pay for, their water bill. With some water customers being hit harder than others, targeted intervention is vital to stop the otherwise inevitable spiral of people falling into destitution.”

CCW’s research has shown 5 out of 6 customers who cannot afford their water bill are not getting the financial support they need.