Water Bills to Rise by Average of 26 Percent in April

The Consumer Council for Water described the increase as the largest rise in water bills since privatisation of the industry 36 years ago.
Water Bills to Rise by Average of 26 Percent in April
File photo of a household water tap. Rui Vieira/PA Wire
Victoria Friedman
Updated:
0:00

Water bills will rise by an average of 26 percent from April 1, according to figures published by the industry body Water UK on Thursday.

This mean customers’ annual bills will go up from £480 last year to £603, an increase of £123 or around £10 a month.

However, millions of households will face higher increases as the change varies across England and Wales by water provider.

Southern Water customers will see the highest average rise at 47 percent, a £224 increase per year. Hafren Dyfdwy and South West Water will both see rises of 32 percent, followed by Thames Water (31 percent), and Yorkshire Water (31 percent).

Only Bristol Water will see a single-digit increase (4 percent), with Sutton and East Surrey Water customers being the only consumers in England and Wales to see their water prices go down (by 2 percent).

Other factors can influence a household’s water bill, such as how much water they use and whether their water is metered.

The bill rises will fund investment across fresh water, waste, and environmental projects across England and Wales.

The Consumer Council for Water (CCW), which is the independent voice for water and sewage customers, described the increase as the largest rise in water bills since privatisation of the industry 36 years ago and called for urgent action to protect struggling households.

Companies Investing £20 Billion

In December, water regular Ofwat approved multi-billion-pound investment plans by water companies over the next five years, which the regulator said will “help unlock critical new infrastructure across England and Wales, boosting local growth.”

Water UK said in 2025/2026 alone, water companies will invest a record £20 billion in projects, “the highest amount ever in a single year and more than double last year.”

This includes funding the construction of nine new reservoirs, nine new water transfer schemes, upgrading the capacity of 1,700 wastewater treatment works, and protecting more than 15,000 kilometres (9,320 miles) of rivers across England and Wales.

The industry body said the government has ensured funds raised by these increases will only be paid if used for genuine improvements; if those improvements are not delivered, then Ofwat will automatically reduce customers’ bills.

‘Urgently Need Investment’

Announcing the plans, Water UK Chief Executive David Henderson 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.”

A worker from Thames Water delivering a temporary water supply from a tanker to the village of Northend in Oxfordshire, England, on Aug. 10, 2022. (Andrew Matthews/PA Media)
A worker from Thames Water delivering a temporary water supply from a tanker to the village of Northend in Oxfordshire, England, on Aug. 10, 2022. Andrew Matthews/PA Media

Water UK said that some 3 million households will be able to access reduced bills and other forms of financial support.

The industry body added that those struggling to pay their bills could be eligible for payment breaks and even debt forgiveness, urging those concerned to contact their water companies to see what help is available.

Millions of Customers Under Pressure

However, the CCW warned that the most vulnerable households will not be able to cope with the rise in bills, urgently calling for “stronger and fairer support” for consumers.
The advocacy group cited its own research which outlines the financial struggles that many people are already facing. Its survey found that 44 percent said they have reduced spending on essentials like food and heating in order to afford to pay the bills, including their water bill.

Some 25 percent of those surveyed who have a water meter have said they have cut back on what they consider “essential water usage” owing to affordability concerns.

CCW Chief Executive Mike Keil 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.”

Keil said that 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.”

Higher Prices for 2025

The increase in water bills is not the only pressure that consumers will be facing in 2025.
On Jan. 1, energy bills for homes in England, Wales, and Scotland increased by 1.2 percent, with analysts predicting a further rise of 3 percent in April.
Single bus fares in England also went up from £2 to £3 this month, and will be in place for the whole of 2025.

TV licences will get more expensive from April, going up from £169.50 for a colour set to £174.50, after the government approved a 2.9 percent rise in line with inflation.

April will also see council tax rise by up to 5 percent, which communities minister Matthew Pennycook said in November was the “right threshold,” pointing to the pressures being felt by local authorities.