A huge rise in water bills from April this year has prompted calls for more help for those already struggling with debts, with prices rising as much as 47% in one hit
Households face inflation-shattering water bill increases of up to £224 a year in April in the biggest wave of hikes since privatisation.
Watchdogs called for urgent help for customers already battling to cope, as it was confirmed prices will surge by as much as 47% in one hit. Mike Keil, chief executive of the Consumer Council for Water, 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.”
Yet while households learnt of further pain to come, two more water firms revealed more rewards for shareholders. United Utilities and South West Water said they will raise dividend payouts in line with inflation this year.
However, customers face bill increases well in excess of inflation. United Utilities, which covers north west England, will hike its average bills by a whopping 23%, or £112, to £598 a year from April. South West’s average bill will jump even more, by 32% – or £166 – to £686 a year. Crisis hit Thames Water will up its average bill by nearly a third – or £151 – to £639 in April.
Yet even that isn’t the biggest increase coming down the line for households from April 1. Southern Water’s prices will rocket by 47% in April, taking its average annual bill to £703 – a leap of £224. The company has been slammed for its track record on pollution. In 2021, it was fined £90million for deliberately dumping billions of litres of raw sewage into the sea.
In December, regulator Ofwat announced its final decision on how much bills could rise by over the next five years to fund vital investment. The companies have since gone away and settled on how much bills rise by from April, the first year of the changes, after taking inflation and other elements into account.
Trade body Water UK said the average household water and sewerage bill in England and Wales will rise by £123 – 26% – from April 1, going from £480 to £603.
Factors such as whether a customer has a meter and how much water they use means the bill changes will vary considerably for customers depending on their circumstances.
Firms argue the hikes are needed to fund much needed investment to improve services for customers and to clean up our rivers and seas. But the Consumer Council for Water says it is concerned about the impact these increases will have on millions of struggling households.
It published new research revealing more than two in five (44%) customers say they have already reduced spending on essentials like food and heating to ensure they can afford household bills, including water. One in four with a water meter said they had reduced what they considered to be essential water use to keep bills affordable.
Mr Keil said: “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.”
Suppliers claimed they intended to support more than three million households with their bills as part of a financial package of affordability support worth more than £4.1billion over the next five years.
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.” He said water companies will invest a record £20billion in the next financial year.
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. 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.”
Water and wastewater companies
| 2024-25 | 2025-26 | Change (£) | Change (%) | |
|---|---|---|---|---|
| Anglian Water | £527 | £626 | £99 | 19% |
| Dŵr Cymru (Welsh Water) | £503 | £639 | £136 | 27% |
| Hafren Dyfrdwy | £447 | £590 | £143 | 32% |
| Northumbrian Water | £426 | £506 | £79 | 19% |
| Severn Trent Water | £457 | £556 | £99 | 22% |
| South West Water (south west region) | £520 | £686 | £166 | 32% |
| Southern Water | £478 | £703 | £224 | 47% |
| Thames Water | £488 | £639 | £151 | 31% |
| United Utilities | £486 | £598 | £112 | 23% |
| Wessex Water | £556 | £669 | £113 | 20% |
| Yorkshire Water | £467 | £602 | £136 | 29% |
Source: Water UK
Consumer Council for Water is encouraging households to stay one step ahead of the April bill rises by following its top tips:
:: See if you’re eligible for a cut-price social tariff: More than 1.6 million low-income households are currently receiving cheaper bills through water companies’ social tariffs. Eligibility and the level of support varies from company to company, but the average annual saving is around £160. CCW has a guide to these tariffs on its website.
:: Trial a water meter: 2 in 5 households in England and Wales still don’t have a water meter and some of these would benefit from switching. Not everyone will be better off with a meter but for some households the savings can be considerable. And, unless you live in a region where metering is compulsory, you can trial a meter for up to two years and switch back during that time if you are unhappy. CCW’s water meter calculator can help you work out if you might save with a meter.
:: Reduce your use to save water, energy and money. Much of the water we use in the home comes from the hot tap. That means if you have a water meter you can double up on water and energy savings too. If every person in a family of four reduced their daily shower time by two minutes they could save around £200 a year (water and energy combined).
Water companies also offer a range of other support from payment breaks to debt write-off schemes. For more tips, tools and advice visit ccw.org.uk
