Water bills in England and Wales are set to increase by an average of £33 per year starting this April. This rise, equivalent to about £2.70 per month, represents a 5.4% hike, exceeding the current inflation rate of 3.4%.
Regulator Ofwat previously authorized water companies to raise average bills by 36% over a five-year span until 2030. The additional revenue is crucial to support a £104 billion investment plan aimed at upgrading infrastructure and preventing sewage overflows, according to Water UK. However, critics argue that the escalating costs will burden families already grappling with financial pressures.
Water UK announced that approximately 300,000 more households are anticipated to benefit from social tariffs in 2026/27, bringing the total receiving assistance to around 2.5 million. These social tariffs offer discounted rates for water and sewerage services, with an expected average discount of 40%.
David Henderson, Chief Executive of Water UK, emphasized the necessity of the bill increases to fund essential upgrades for water security and environmental protection. He also highlighted the commitment to aid 2.5 million households with significant discounts on their water bills.
Mike Keil, CEO of the Consumer Council for Water (CCW), expressed concerns over the affordability of water bills, citing a surge in complaints. Keil stressed the importance of transparent spending to reassure consumers and called for enhanced support for those facing financial strain.
Ofwat’s interim Chief Executive, Chris Walters, reassured that companies are held accountable for their performance and financial commitments. He emphasized that funds collected for improvements are safeguarded, and companies failing to deliver on promises may have to refund customers. Walters acknowledged the challenges posed by bill increases and highlighted the expanded support available for struggling customers.
While customers cannot switch water providers, there are strategies to save money, such as reducing water usage and exploring free water-saving devices. Installing a water meter, as advised by financial expert Martin Lewis, may also lead to cost savings, especially for households with more bedrooms than occupants.