Household water bills will rise by an average of £94, or 21 per cent, over the next five years after regulator Ofwat approved steep price rises.
The increased bills will cover pipeline and reservoir upgrades that water companies say are badly needed, but will also go toward paying investors.
Environment Secretary Steve Reed said this week that consumers would be “angry” about rising water costs.
The bill increases will occur from April 2025.
Ofwat has been locked in heated discussions with water companies this year over how much bills could rise.
Water torture: Higher bills come amid outrage over sewage contamination of waterways
Initially, water companies wanted to increase bills by an average of £585 by 2030, a 33 per cent increase.
Ofwat said no in July and suggested a 21 per cent increase, to £535.
Then water companies came out swinging in October, demanding bill increases of an average of 40 percent, with some asking for increases as high as 84 percent.
Ofwat then left to consider what to do before reaching its decision today to allow rises of 21 per cent.
Four water companies successfully challenged Ofwat’s latest pricing decision in 2019, increasing customers’ bills by more than the regulator initially determined.
Ofwat chief executive David Black said: ‘Our draft decisions on the company’s plans approve tripling investment to make sustained improvements in customer service and the environment at a fair price for customers.
‘Let me be very clear with the water companies. We will closely examine the execution of their plans and hold them accountable for achieving real improvements for the environment and for customers and in their investment programmes.’
A survey carried out in November by the Consumer Council for Water (CCW) found that 18 per cent of customers are already struggling to pay their water bills.
Forty percent said they would find it difficult to afford a bill increase of 21 percent, let alone more.
Matthew Topham, leader of We Own It, a group fighting for public ownership of utilities, said: “It is absolutely shameful that after 35 years of bonus scandals, sewage spills and huge dividends, water companies be rewarded by Ofwat with huge increases in bills to curb inflation.
“Why should Britons have to cut their spending on food and other essentials, as many fear these increases will require, to pay a privatization tax to wealthy foreign shareholders?”
How to save money on water bills
Consider a water meter
Around 40 per cent of homes in England and Wales do not have a water meter, and some of them would save money on water bills by installing one.
Getting a water meter is often the best way to save money on bills, for those who don’t use a higher than average amount of water.
Not everyone will save with a meter, but water companies will generally give you two years to try one and allow you to change it back if you’re not happy.
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 much water, or live alone.
Use less water if you can.
If you have a water meter installed, using less water means paying lower bills.
Household water bills with these meters are made up of rates for the water used, as well as fixed daily charges.
But using less water also means lower energy bills, since much of the water homes use is heated first.
Check if you are entitled to a social rate
Each water company in England and Wales has its own social tariff system designed to help low-income customers.
But who is eligible and the level of support offered varies greatly from company to company. In some cases, bills can be reduced by up to 90 percent.
CCW has a list of rates and social criteria. on your website.
For example, Thames Water’s social tariff is called Water Help.
Reduces water bills by 50 percent for households where this costs more than 5 percent of their net income.
According to the CCW, almost two million households (or 15 percent) are eligible for social water tariffs, but have not subscribed to any.
Consider the WaterSure scheme
WaterSure is a government scheme run by water companies to discount bills for qualifying 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 Allowance.
Most of the benefits listed are for low-income people.
A household that enrolls in WaterSure will also need large amounts of water, either for medical reasons or because they have many young children.
They must also have a water meter installed or be on a waiting list for one.
WaterSure offers discounts on both the water and sewer portions of a water bill.
To apply, you will 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.
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