Water bills in England and Wales are set to increase by an average of £33 per year starting this April. This hike, equivalent to about 5.4% or £2.70 monthly, surpasses the current inflation rate of 3.4%.
Regulator Ofwat had previously allowed water companies to raise average bills by 36% over a five-year period until 2030. Water UK stated that these price hikes are necessary to support a £104 billion investment initiative aimed at enhancing infrastructure and preventing sewage leaks. However, activists expressed concerns that the rising bills could further burden families already facing financial challenges.
Water UK announced that an additional 300,000 households are expected to benefit from social tariffs in 2026/27, bringing the total number of supported households to approximately 2.5 million. Social tariffs offer discounted rates for water and sewerage charges, with an expected average discount of around 40%.
David Henderson, Chief Executive of Water UK, emphasized the importance of the increased funds for essential upgrades to secure water supplies, boost economic development, and curb sewage contamination of water bodies. Mike Keil, CEO of the Consumer Council for Water, noted a surge in complaints regarding the affordability of water bills and urged for better transparency on how customer payments are utilized.
Chris Walters, Ofwat’s interim Chief Executive, reassured that companies are held accountable for their performance and financial allocations, with provisions for refunds if commitments are not met. He acknowledged the financial strain the bill increases may pose and highlighted the expanded support available for customers facing payment difficulties.
While consumers cannot switch water providers, there are ways to save money, such as reducing water usage and installing water-saving devices. Suggestions include shortening shower times, turning off taps when not in use, and exploring free water-saving devices from organizations like Save Water Save Money. Additionally, considering a water meter installation, especially if the number of bedrooms in a household exceeds the number of occupants, could lead to cost savings.