Average annual water and sewerage bills in England and Wales are set to rise by £123 from £480 to £603 in April – an increase of 26% on the previous year.

Announcing the increase, Water UK, the body which represents all the UK water companies, said that despite the rise, water bills will only be 5% higher in real terms than they were in 2010. However, there are significant variations between regions on the combined total of an average sewerage bill of £316 and average water bill of £287.

Water UK said that companies will increase support for low-income households to their highest levels ever - more than 3 million households will receive reduced bills and other forms of financial support worth up to £4.1 billion over the next five years.

Most supported households will either receive ‘social tariffs’ or ‘WaterSure’ charges that will reduce their water bills. Customers who are struggling to pay their bills can also receive a range of support measures including payment breaks and debt forgiveness.

Water companies will invest a record £20 billion in 2025-26 – the highest amount ever in a single year and more than double last year

Water UK point out that Government has taken steps to ensure funds raised by increased water bills are guaranteed only to pay for investment in things that are genuinely new and genuinely needed and represent value for money. If improvements aren’t delivered, then customer bills will automatically be reduced by the regulator, the trade body says.

David Henderson, Water UK Chief Executive, said:

“We understand increasing bills is never welcome and, while we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult.

“This is why water companies are more than doubling the level of financial support for customers with £4.1 billion to be made available over the next five years.

“Water companies will invest a record £20 billion in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”

CCW - urgent action needed to protect cash-strapped households from soaring water bills

Commenting on the increase, the Consumer Council for Water (CCW) said stronger and fairer support is urgently needed to protect struggling households from the largest rise in water bills since privatisation of the water industry 36 years ago.

The consumer watchdog is warning that many of the most financially vulnerable households will not be able to cope with a £123 (+26%) increase. Some households face even steeper rises with the increases for the main water and sewerage companies ranging from 19% to 47%.

CCW acknowledges that the bill rises will fund much-needed investment to improve services for customers and to clean up rivers and seas.

However, CCW is concerned about the impact the increases will have on millions of struggling households and believes that some companies have not shown enough ambition to ensure everyone can afford their water bill. In addition, customers also continue to be faced with a postcode lottery of company social tariff schemes, which means the level of support and who is eligible varies considerably across England and Wales.

New research from CCW has revealed the challenges already facing many bill-payers, with more than two in five (44%) saying they have already reduced spending on essentials like food and heating to ensure they can afford household bills, including water. One in four (25%) households with a water meter said they had reduced what they considered to be essential water use to keep bills affordable.

Mike Keil, Chief Executive of the Consumer Council for Water (CCW), said:

“These rises are the largest we’ve seen since privatisation and will heap considerable pressure on millions of customers who are already having to make difficult choices. Customers want to see investment in improving services and cleaning up our rivers but that can’t come at an unbearable cost to struggling households.”

“Around 2.5 million households are already in debt to their water company and there is a danger that number will grow unless some companies show more ambition around financial support. The existing safety net for customers who cannot afford their water bill is not strong enough. That’s why we urgently need a single social tariff scheme to provide fair and consistent support across England and Wales.”

Ofwat - “While bills are rising, £104bn investment over next five years will accelerate delivery of cleaner rivers and seas”

Commenting on the bill increases which cover the next financial year (2025-26), David Black, Ofwat Chief Executive, said:

“We recognise the challenge that some customers are facing with increasing financial pressures and understand that the water sector is not the only area where customers are faced with rising costs. While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2025/26 will be 26% or £123. We have pushed companies to double the amount of support over the next five-year period and strongly encourage customers who are struggling to pay their water bills to contact their water company to access this.

“While bills are rising, the £104bn investment we have approved over the next five years will accelerate the delivery of cleaner rivers and seas and help to secure long-term drinking water supplies for customers. This is an ambitious programme of work, and we now need to see companies deliver significant improvement in performance for customers and the environment. Where companies underperform, or investment isn’t delivered, we will hold companies to account and protect customers.”