Average yearly water and sewerage bills in England and Wales are forecast to rise by 1.7% in the forthcoming year- well below inflation, which is currently standing at 4.8% (CPIH).

Water UK, the body which represents all the UK water companies, said that bills are lower in real terms than they were a decade ago and average yearly bills have fallen in the last two years.

Average water bills are forecast to be £419 (a rise of £7), or just over £1 per day – an increase of just 2p per day on last year’s charges.

With the cost of living rising, customers are being encouraged to contact their water company if they need help with their bills. A record 1.1 million customers are now receiving some form of support with paying their water bills. This is set to rise to 1.4 million by 2025. Since the Covid-19 pandemic began, more than 100,000 customers have been given payment breaks.

Average bills are estimates based on forecast data provided by water companies. The average household bill is an average across all customers. An individual customer’s bill may be more or less than the average because of their particular characteristics – for example, whether they have a water meter and how much water they use.

Christine McGourty, CEO of Water UK said:

“Customers will continue to pay little more than £1 a day for their water and sewerage service, helping to directly fund significant investment in improving infrastructure and enhancing the environment.

“But we know this a difficult time for many, and no-one should have to worry about their household essentials. There is a wide range of support available for those in need, and I would urge anyone who’s concerned to get in touch with their water company.”

The below-inflation average bill increase comes in the third year of the 5-year AMP7 business cycle for water companies. Water companies in England and Wales are investing about £10 billion in 2022-23, as part of a £51 billion investment package over the five years from 2020 to 2025.

Ofwat calls on water companies to offer a helping hand to those in need

Water sector regulator Ofwat is calling on water companies to make providing support for customers struggling to pay a top priority.

Ofwat has pointed out that 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."  

CCW - households can act now to prevent water bills from adding to money worries

Consumer watchdog CCW says that households can act now to prevent water bills from adding to money worries – but that just 1 in 4 customers are aware water companies have assistance schemes that can reduce the bills of low-income households.

CCW is spearheading efforts to replace what it describes as “the postcode lottery” of existing financial support schemes with better targeted help that will end water poverty for 1.5 million households

Households struggling to cope with a wave of rising living costs can take action now to dilute the impact of water bills, ahead of an increase in charges for millions of customers this April.

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.”