Water bills in England and Wales are set to increase by an average of £33 per year starting this April. This uptick, amounting to about 5.4% or £2.70 per month, surpasses the current inflation rate of 3.4%.
Regulator Ofwat had previously authorized water companies to hike average bills by 36% over a five-year period until 2030. Water UK stated that these increases are necessary to support a £104 billion investment plan aimed at enhancing infrastructure and preventing sewage overflows. However, critics argue that the rising bills will add to the financial burden of families already grappling with escalating expenses.
Water UK projects that an additional 300,000 households will be eligible for support in 2026/27 through social tariffs, bringing the total beneficiaries to around 2.5 million. Social tariffs offer discounted rates for water and sewerage charges, with an anticipated average discount of approximately 40%.
David Henderson, Chief Executive of Water UK, emphasized the importance of these bill increments in funding crucial upgrades to secure water supplies and curtail sewage pollution in rivers and seas. Mike Keil, Chief Executive of the Consumer Council for Water (CCW), highlighted the growing concerns over the affordability of water bills and urged for a stronger safety net for those struggling to cope with the rising costs.
Ofwat’s interim Chief Executive, Chris Walters, assured that companies would be held accountable for delivering on their commitments and that customer funds are earmarked for improvements. He acknowledged the financial strain these bill hikes may impose on some individuals and noted the increased support available for customers facing payment difficulties.
While switching water providers is not an option, there are ways to save money on water bills. Simple practices like reducing shower time and turning off taps when not in use can contribute to savings. Additionally, exploring free water-saving devices through initiatives like Save Water Save Money and considering installing a water meter, as suggested by financial expert Martin Lewis, can help manage costs effectively.
