Table of Contents
Household water bills are expected to rise by an average of £94 over the next five years, with some unlucky regions seeing bills rise by almost £200.
One area of the country should see bills fall, albeit by only £12.
The changes to water bills are set out in proposals from regulator Ofwat, which has scrutinised the spending plans of English and Welsh water companies.
These water companies submitted their five-year spending plans to Ofwat in October 2023.
Capital punishment: Thames Water, which supplies London and parts of the Home Counties, could be renationalised if it fails to comply with strict new plans from water regulator Ofwat
Most argued that higher bills were needed to fund infrastructure improvements, including curbing the scandal of sewage being dumped into waterways and oceans.
Now the regulator has set out bill changes it considers reasonable and has placed one water company, Thames Water, under special measures.
Ofwat will make a final decision on the exact level of bill changes in December 2024.
By far the biggest projected bill increases will be for customers of Southern Water, which covers Kent, Hampshire, the Isle of Wight, East Sussex and West Sussex.
These households will see their bills rise by almost half (44 per cent) if Ofwat officially approves its proposals.
This is how the regulator wants water bills to change in its area.
Water company | Current average bill | Average bill in 2030 | Difference | % change |
---|---|---|---|---|
Water from the South | £420 | £603 | +£183 | +44% |
Hafren Dyfrdwy | £396 | £524 | +£128 | +32% |
Democratic Republic of Cymru | £466 | £603 | +£137 | +29% |
Yorkshire water | £430 | £537 | +£107 | +25% |
Thames water | £436 | £535 | +£99 | +23% |
Severn Trent Water | £403 | £496 | +£93 | +23% |
United public services | £442 | £536 | +£94 | +21% |
Anglian water | £491 | £557 | +£66 | +13% |
Water from the southwest | £497 | £561 | +£64 | +13% |
Northumbrian Water | £415 | £460 | +£45 | +11% |
Wessex water | £508 | £497 | -£12 | -2% |
Source: Ofwat |
Mike Keil, chief executive of the Consumer Council for Water (CCW), said: ‘Millions of people will be upset and anxious at the prospect of these water bill increases and will question their fairness, given the track record of failure and poor service by some water companies.
‘Clients understand that investment is urgently needed, but they need to be assured that every cent of their money will be well spent.
‘Trust in water companies has never been lower and that won’t change until people see and experience a difference, whether that’s having the confidence to swim at their favourite beach or getting help if they’re struggling to pay their bill.’
Rising tide: Average water bills are likely to exceed £450 a year across all regions of England and Wales by 2029, with some exceeding £600.
How to save money on water bills
Consider a water meter
Around 40 per cent of households in England and Wales do not have a water meter, and some of them would save money on their water bills if they installed one.
Getting a water meter is often the best way to save money on bills, for those who do not use an above average amount of water.
Not everyone will save money with a meter, but water companies will usually give you two years to try it out and allow you to change it if you’re not happy.
Water companies do not have to agree to install a water meter, for example, if doing so would be costly or counterproductive. This might be the case if several residences share the same water pipes.
Meanwhile, in some areas it is mandatory to have one if the water company requests it.
The CCW has a calculator that helps you understand if a Water meter could save you money.
However, the general rule is that a water bill could lower your bills if you live in a property with a high “taxable value” (the formula used to set estimated water bills), don’t use a lot of water, and/or live alone.
Meter Rule: Many water bill savings are only possible if you are one of the few households that have a water meter installed, which can monitor exactly how much you are using.
Use less water if you can
If you have a water meter installed, using less water means paying lower bills.
Water bills for households with these meters consist of fees for the water used as well as daily fixed charges.
But using less water also means lower energy bills, since much of the water homes use is heated first.
CCW figures show that if each person in a family of four reduced their daily shower time by two minutes, they could save around £280 a year in combined water and energy costs.
Repair leaks and upgrade water-consuming appliances
Also, fixing leaks early can save you money on water bills, again if you have a meter installed.
Signs of a water leak include the obvious ones: dripping, moisture, discoloring walls, floors and ceilings, mold and mildew, and a musty smell.
But some water leaks can be harder to detect. For example, wet areas or grassy patches in your yard may indicate a water leak from an underground pipe.
Similarly, low boiler pressure may indicate a leak in the hot water system.
Upgrading some of your appliances at the end of their life can also save you huge amounts on water bills.
For example, even replacing your old toilet with a dual-flush model could save you more than £100 a year, according to B&Q owner Kingfisher.
That’s because toilets are responsible for 22 percent of all water used in a home, and a dual-flush toilet allows users to regulate the amount used with each flush.
Check if you are entitled to a social rate
Each water company in England and Wales has its own social tariff scheme designed to help low-income customers.
But the beneficiaries and the level of support offered to them vary widely from company to company. In some cases, bills can be reduced by up to 90 percent.
CCW has a List of social rates and criteria on their website.
For example, Thames Water’s social tariff is called Water Help.
Reduces water bills by 50 percent for households where water accounts for more than 5 percent of their net income.
Nearly two million households (or 15 percent) are eligible for social water tariffs but do not subscribe to one, according to the CCW.
Five water companies are using their own profits to offer cheaper rates.
These are Welsh Water, Severn Trent, Yorkshire Water, SES Water and United Utilities.
Consider the WaterSure plan
WaterSure is a government scheme run by water companies to discount the bills of eligible households in England and Wales.
To qualify, a household must receive certain benefits, such as Universal Credit, Pension Credit, Housing Benefit or income-related Employment and Support Benefit.
Most of the benefits on the list are for those with low incomes.
A household that subscribes to WaterSure will also need large amounts of water, either for medical reasons or because they have many small children.
They must also have a water meter installed or be on a waiting list to get one.
WaterSure offers discounts on both the water and sewer portion of a water bill.
To apply, you’ll need to fill out a form from your water company and will likely need to prove that you receive benefits and have a qualifying medical condition.
Consider water-saving devices
Water companies give away many free devices that help you save water and money, although this depends on where you live.
These widgets include water-saving shower heads, water jugs, etc.
To find out what you can get, enter your zip code in the Website to save water and money.
SAVE MONEY, EARN MONEY
Boosting investment
Boosting investment
5.09% cash for Isa investors
Cash Isa at 5.17%
Cash Isa at 5.17%
Includes 0.88% bonus for one year
Free stock offer
Free stock offer
No account fees and free stock trading
5.78% savings
5.78% savings
You have 365 days’ notice
Fiber broadband
Fiber broadband
BT £50 Reward Card: £30.99 for 24 months
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationships to affect our editorial independence.