Water UK has today confirmed that water companies in England and Wales will invest a record £14.4 billion – the highest amount ever in a single year – 2024-25.

Companies will also increase support for low-income households to its highest level ever. More than 2 million households now receive help with their water bills.

Customers have seen their bills fall in real terms over the last decade, with average bills to increase by around £2 a month from April 2024.

The water industry trade body said the highest annual investment on record will help guarantee a stable supply of clean water, even as the climate changes, and cleaner rivers and seas

The investment will help build 10 new reservoirs, increase the capacity of dozens of wastewater treatment works - meaning more capacity to treat sewage than ever before - and see more than 2,000 kilometres of pipes repaired and replaced.

Water UK said that despite the record investment, bills are rising less than they did in the previous financial year, with customers seeing their bills increase by around £2 a month (6%). But compared to the high levels of inflation seen in recent years, this represents a real terms fall of around 15% over the last decade. If water bills had kept pace with inflation since 2014-15, they would be around £60 higher today.

Customers will pay £1.29 a day for sewerage services and world-class drinking water. Full details about the new average bills can be found here.

David Henderson, Water UK Chief Executive, said:

“Next year will see record levels of investment from water companies to secure the security of our water supply in the future and significantly reduce the amount of sewage in rivers and seas.

“Up and down the country customers will see the results of this investment with more than 2,000 kilometres of pipes being repaired or replaced and more capacity to treat sewage than ever before.

“At the same time support for customers is doubling with more than 2 million families now being with helped with their bills. Anyone with worries should contact their water company and, it is worth remembering, water companies will never cut anyone off or make them use a prepayment meter.”

Examples of what the 2024-25 investment by water companies will deliver include:

• The 25km Tideway super sewer will begin its testing phase – diverting storm flows away from the River Thames for the first time and will be fully operational later in 2025. Once finished, sewage pollution into the River Thames will be reduced by 95%.
• Work to begin on the Havant Thicket reservoir in Hampshire. The reservoir, a joint project between Portsmouth Water and Southern Water, will be the first reservoir to be built in the UK in more than 30 years.
• United Utilities will start work on replacing large parts of the 110km Haweswater Aqueduct which has successfully served 2.5 million people in Cumbria, Lancashire and Greater Manchester for sixty years.
• Severn Trent is delivering large-scale projects including a £25 million project to install a new sewer system in Stroud, and the £76 million flood alleviation scheme in Mansfield, including installation of sustainable drainage
• South East Water will complete construction of a brand new £39 million water treatment works in March 2025 which will provide new water resources in the heart of Kent, strengthening resilience.
• South West Water is progressing plans to bring desalination to Cornwall as part of its £125 million investment to increase water resources available in Cornwall by around 45%, and in Devon by around 30%. 
• Welsh Water is investing over £12 million near Pontypool to help reduce the number of spills and boost the water quality in the nearby River Usk and Afon Lwyd. The site is the first of its kind in Wales, and involves the creation of reed beds, wetlands, footpaths, environmental enhancements and educational areas, providing socio-environmental benefits for the community.

David Black, Ofwat CEO said:

“Over the last few years, the Covid-19 pandemic and the cost of living crisis have had a significant impact on household finances. 

“While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2024/25 will be £27.40, equivalent to about £2.30 a month. We are very aware, for those who are already struggling, this will be a real worry. As such, water companies must do all they can to protect those who are most in need of a helping hand.  

“In Ofwat’s latest ‘Cost of Living’ research, we found that awareness of the support available, such as moving to a social tariff or on to a water meter, has continued to remain very low. We would encourage anyone who is worrying about how to pay a water bill to contact their water company and find out what schemes are on offer that could reduce bills, smooth payments, or help with debt. 

“Through covid and the cost of living crisis, some water companies have consciously kept average bills lower than they would have been. Bills have remained below inflation easing the impact on customers, while continuing to invest in the network. This year, some of that previously withheld revenue has been added to bills, taking the average to 6.1% or £27.40 a year. Even accounting for this increase, bills in real terms will be lower than they were in 2019/20.”