Severn Trent has been given the green light by Ofwat for a major multibillion pound investment AMP8 programme, set to deliver huge benefits to the Midlands.

Severn Trent said the five-year plan is underpinned by a track record of keeping customer bills the second lowest bill in England. Severn Trent will also increase its financial support for customers to £575m to help more than 700,000 people - double the current number.

According to the water company, for billions of pounds in new investments, customer bills are nonetheless set to remain second lowest in the country, accompanied by a customer guarantee that nobody will pay for anything twice – it's all new investment.

The investment will generate up to 7,000 new jobs directly and across the supply chain, significantly boosting the regional economy.

Investment highlights include:

Rapid progress on reducing the use of storm overflows - An additional £2 billion investment to accelerate and go even quicker to improve river quality, including £1.2bn on storm overflows. This year alone, £450m is being invested at 900 Midlands’ locations to reduce spills by 20% a year - once complete - with work well underway

A secure water supply for the future - New water mains and sources will ensure a reliable supply for the growing population and climate change impacts, providing an extra 100 million litres a day from new water sources

Building on a strong track record to reduce leakage, Severn Trent aims to reduce leakage by 16%, by laying thousands of kilometres of new water mains across our region

Water and money savings - Over one million smart meters will be installed, helping customers understand and reduce water usage.

Carbon emissions benefits - Significant investment in net zero as part of commitment to 2030 goal, alongside building on the world’s first net zero hub for operational carbon emissions in Stoke and partnership with Melbourne Water and Aarhus Vand to share global best practice

Sector leading performance

Welcoming Ofwat’s backing for the £12 billion investment programme to bring growth to the region, Chief Executive Liv Garfield said:

“Our customers told us what mattered most, and we listened. This multibillion-pound investment will bring huge benefits to our region now and for generations to come with a secure water supply of the best quality, reducing impact on rivers down to nearly zero, whilst importantly keeping bills affordable and helping anyone who needs extra support.

“Our customers will continue to have the second lowest bill in the country, backed by one of the largest financial support packages available - if anybody needs help it’s there. Another boost to the local economy is significant job creation, but we won’t stop there - we’ll help thousands more across the region back to work.”

“Our dedicated team of around 9,000 Severn Trent employees have enabled us to be recognised as an Outstanding company by Ofwat and we now stand ready to deliver the thousands of exciting projects that will make a huge difference to our customers and communities.

“Thanks to our recent £1bn cash injection from our investors, we’re building on our sector leading performance to accelerate investment and deliver immediate benefits on the things that matter most, including reducing the use of storm overflows at 900 sites this year alone.”

The next round of discussions on the fine detail in the plan take place with Ofwat in the coming weeks and continue until the end of the year when Ofwat’s Final Determination is issued in December.