Water bills in England and Wales are set to increase by an average of £33 per year starting this April. This hike, equivalent to around 5.4% or £2.70 per month, surpasses the current inflation rate of 3.4%.
Regulator Ofwat had previously authorized water companies to raise average bills by 36% over a five-year span until 2030. Water UK stated that these increments are essential to finance a £104 billion investment scheme for infrastructure improvements and to prevent sewage overflows. However, critics argue that the escalating bills will pose a challenge for families already grappling with soaring expenses.
Water UK estimates that an additional 300,000 households will be eligible for social tariffs in 2026/27, bringing the total number of beneficiaries to around 2.5 million. These social tariffs offer discounted rates on water and sewerage charges, with an anticipated average discount of 40%.
David Henderson, Chief Executive of Water UK, emphasized the necessity of the bill increases to support crucial upgrades for water supply security and environmental protection. Mike Keil, from the Consumer Council for Water (CCW), highlighted the growing concerns about the affordability of water bills and the need for transparent spending of customer funds.
Ofwat’s interim Chief Executive, Chris Walters, assured that companies would be held accountable for delivering on their commitments and that funds collected from customers are earmarked for improvements. Efforts have been made to enhance support for customers facing financial difficulties, with over 2 million households currently accessing this assistance.
Although switching water providers is not an option, there are ways to save on water bills. Simple practices like reducing shower time by a minute, turning off taps when not in use, and utilizing water-saving devices can make a significant impact on costs. Additionally, installing a water meter, especially if your house has more bedrooms than occupants, can lead to potential savings according to financial expert Martin Lewis.