How much your water bill could increase next year
Ofwat announced that water bills will rise by a total of £157, or 36%, over the next five years.
Households in England and Wales will have to pay an extra £31 on average for their water bills over the next five years, regulator Ofwat has announced.
The increase is significantly higher than the expected increase of around £20 a year per household as outlined in the regulator’s draft proposals in July.
The rise is most stark for customers who use Southern Water, which can increase bills by 53%.
Households will actually face an average hike of £86 or 20% from April 2025, with smaller percentage increases in each of the following four years. However, the price rises come before rising inflation is factored in – meaning they could be even higher than the figures released today.
Why are my water bills rising?
Ofwat says the increase is needed to pay for a £104 billion upgrade of the water sector to deliver “substantial, lasting, improvements for customers and the environment”.
Aging infrastructure – including pipes, treatment plants and reservoirs – need to be improved, water companies say, and these costs are being passed on to consumers.
Sewage spills, which are costly to clean up, are also believed to be a primary reason for rising bills. The government is enforcing stricter environmental regulations to boost water quality but, again, these costs are being passed on to consumers by water companies.
Sewage spills have resulted in the fines amounting to hundreds of thousands of pounds – which are now being passed onto consumers in bill hikes.
Chris Walters, from Ofwat, told the BBC on Thursday that the money was needed to “safeguard the health of our rivers, our seas and our waterways, to improve the resilience of our water supplies… and to get companies to really raise their game on their day-to-day performance in areas that matter to customers and the environment”.
Water bills vary by region across England and Wales for various reasons. Factors like the availability of water in a region and the size of the area can affect water rates, while the cost of moving water, environmental facts and whether people live in densely populated cities or the countryside can also affect how much water companies charge.
Changes in bills, showing average bill in 2024/25, average bill in 2029/30 and increases or decreases:
Water and wastewater companies
Anglian Water: 2024/25 £491; 2029/30 £631; up £140 (+29%)
Dwr Cymru: 2024/25 £455; 2029/30 £645; up £190 (+42%)
Hafren Dyfrdwy: 2024/25 £392; 2029/30 £557; up £165 (+42%)
Northumbrian Water: 2024/25 £422; 2029/30 £510; up £88 (+21%)
Severn Trent Water: 2024/25 £398; 2029/30 £583; up £185 (+47%)
Southern Water: 2024/25 £420; 2029/30 £642; up £222 (+53%)
South West Water: 2024/25 £497; 2029/30 £610; up £113 (+23%)
Thames Water: 2024/25 £436; 2029/30 £588; up £152 (+35%)
United Utilities: 2024/25 £442; 2029/30 £585; up £143 (+32%)
Wessex Water: 2024/25 £508; 2029/30 £614; up £106 (+21%)
Yorkshire Water: 2024/25 £430; 2029/30 £607; up £177 (+41%)
Water-only companies
Affinity Water: 2024/25 £192; 2029/30 £241; up £49 (+26%)
Portsmouth Water: 2024/25 £111; 2029/30 £152; up £41 (+37%)
South East Water: 2024/25 £232; 2029/30 £287; up £55 (+24%)
South Staffs Water: 2024/25 £161; 2029/30 £195; up £34 (+21%)
SES Water: 2024/25 £221; 2029/30 £215; down £6 (-3%)
What has Ofwat said?
Ofwat chief executive David Black said the regulator is “acutely aware of the impact that bill increases will have for customers” but said it was up to water companies to step their support for those struggling to pay.
He said the bill increase was a way for water companies “to regain customers’ trust by using this £104 billion upgrade to turn around their environmental record and improve services to customers”.
Black added: “Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills.”
Chris Walters, from Ofwat, told BBC Breakfast that he had “heard” the concerns of customers but that bills are rising “to fund… investment”.
What do campaigners say?
Campaigners have reacted with both anger and concern for customers following the announcement of higher bills.
Mike Keil, chief executive of the Consumer Council for Water (CCW), called for a social tariff and better support as he warned over the financial hit to households from the increase in bills.
He said: “These bill rises may be less than what water companies wanted but they are still more than what many people can afford."
Keil said that the support offered to lower income households “lacks ambition”, adding that investment “must be coupled with a strong safety net for customers who will struggle to pay”.
Charles Watson from River Action, a campaign group who fight against river pollution, turned his attention to Ofwat themselves, saying the regulator has “failed” and “run up the white flag”. He accused shareholders of water companies of “laughing all the way to the bank”.
Watson told LBC: “Since privatisation, they’ve stripped out £85 billion in dividends last year when we saw sewage dumped into our rivers double to 3.6 million hours, the majority of the CEOs of the 10 water and sewage companies had increased bonuses, and now what’s happened is Ofwat have come to us and said, ‘the only way we can fix this disaster, this environmental disaster, of our water industry is for you and I to foot the bill and for customers to pay’.”
Consumers who have already faced years of price rises, will likely be angry at the latest increase to their bills, especially in light of water companies paying out bonuses after being fined for sewage spills and a perceived lack of care about damaging the environment.
Critics may argue that any profits should be reinvested into improving services or reducing costs for customers, rather than rewarding shareholders. Water leaks and reliability may also play into the anger that is felt by customers. Indeed – on the day these rises were announced, thousands of homes in Hampshire have been left without water following a “technical issue” at a Southern Water supply works.
Meanwhile, fines imposed on water companies for tens of thousands of sewage spills are seemingly being passed on to customers – which only builds resentment between hard-pressed consumers and water companies raking in millions.
Can I get help to pay my bill?
A recent survey for the CCW across 19 water company areas found that nearly one in five (18%) of people were struggling to pay their bills – before today’s announcement. Another 40% said that would find it tough to pay any more.
Financial support for those struggling varies by company but the CCW wants all firms to have a single scheme – ending the postcode lottery of help available, depending on where you live.
There are other places you can turn to if you are struggling with your water bills.
Those on benefits and who have a high essential use of water can apple to WaterSure, that caps bills for customers with a water meter.
Water companies should also have various schemes in place, such as cheaper rates, debt support and flexible payment plans.
You can also contact Ofwat and CCW directly for help and advice.
Tips to reduce your water usage
Obviously water is essential in all aspects of daily life but there are some easy and simple things you can do that can cut your water usage down.
You may not be aware of a leaks so it is worth checking all of your taps and, if possible, pipes. You may be aware of a small drip out of a tap but have done nothing about it. However, these small drips can accumulate over a period of time and add unnecessary costs to your bill. Contact your water company if you think an unusually high bill may be the result of a leak.
Showers can be a relaxing part of your day but it is all too easy to spend more time there than you need to. Reducing your time, even by a minute or two, can significantly cut your costs.
When it comes to washing machines and dishwashers, try to only use them when you have a full load. It will ultimately cut the amount of times you have them on, reducing unnecessary water usage.
There are some water-saving devices that can also be installed, such as low-flow shower heads – and you may even be able to get these from your water company for free.
