
The average annual water bill in England and Wales will rise by 26% or £123 in the next financial year according figures analysed by Water UK.
Water companies have committed extra money for investment in infrastructure, such as reservoirs, and more help for struggling customers. To fund these new levels of affordability support and investment, customer bills will rise by about £10 a month from April 2025. Despite this rise, water bills will only be 5% higher in real terms than they were in 2010.
Water companies will also increase support for low-income households to their highest levels ever. More than 3 million households will receive reduced bills and other forms of financial support worth up to £4.1 billion over the next five years, which is 140% higher in real terms than the support provided in the last five years.
At the same time, water companies will invest a record £20 billion in 2025-26 – the highest amount ever in a single year and more than double last year – to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.
Most supported households will either receive ‘social tariffs’ or ‘WaterSure’ charges that will reduce their water bills. Customers who are struggling to pay their bills can also receive a range of support measures including payment breaks and debt forgiveness. Customers should contact their water company directly to see what help is available if they are concerned.
David Henderson, Water UK Chief Executive, said “We understand increasing bills is never welcome and, while we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult.
“This is why water companies are more than doubling the level of financial support for customers with £4.1 billion to be made available over the next five years.
“Water companies will invest a record £20 billion in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”
Director of Policy & Influencing at Independent Age, Morgan Vine said “Today we learnt that in April, water bills will be rising even more than the amount announced by Ofwat at the end of last year, due to the effects of inflation. This will be extremely distressing news for the millions of older people living on low incomes across the country who were already braced for a steep increase, and will now have to find even more money from their stretched budgets. Polling we commissioned in October revealed the widespread anxiety felt by many people in later life regarding their water bills, with 66% of older people (65+) in England with an income of under £15,000 saying they would find it difficult to manage a 20% increase to their water bill.
“With the postcode lottery of water costs, some people are now facing increases of more than 40%. The older people we speak to are already making drastic cutbacks to save on water. This means not showering every day, leaving bedding and clothes dirty to save on laundry and not always flushing the toilet. This shouldn’t be happening in modern Britain.
“There is some support out there as all water companies do provide a social tariff, but the system is hampered by an unfair postcode lottery, consumers can’t shop around for a provider and are faced with a patchwork of different schemes with varying eligibility criteria and fluctuating discounts. That’s why we’re urging the UK Government to introduce a single standardised social tariff for England and Wales to support those struggling to afford their water bills. Where you live shouldn’t dictate how much help you receive toward an essential bill, and in 2025, nobody should be having to limit their water usage because of cost.”
David Black, Ofwat Chief Executive, said “We recognise the challenge that some customers are facing with increasing financial pressures and understand that the water sector is not the only area where customers are faced with rising costs. While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2025/26 will be 26% or £123. We have pushed companies to double the amount of support over the next five-year period and strongly encourage customers who are struggling to pay their water bills to contact their water company to access this.
“While bills are rising, the £104bn investment we have approved over the next five years will accelerate the delivery of cleaner rivers and seas and help to secure long-term drinking water supplies for customers. This is an ambitious programme of work, and we now need to see companies deliver significant improvement in performance for customers and the environment. Where companies underperform, or investment isn’t delivered, we will hold companies to account and protect customers.”