Water bills to rise by £123 a year in April

Final figures show that households in England and Wales will pay an average of £123 more on their annual water bills starting in April. This increase, which is higher than the figure stated last month, will raise the average annual bill to £603, although there are significant differences across various regions. Water companies have pledged additional funds for infrastructure investments, such as reservoirs, and to provide more assistance to customers facing financial difficulties.

However, consumer groups are cautioning that this price hike will push more households into debt. Regulator Ofwat had outlined projected bill increases in December, covering the next five years. However, the bill increases for the year starting in April, as announced by industry body Water UK, are higher than those projected by Ofwat because the calculations now include inflation, reflecting the rising costs faced by suppliers.

The average bill increase amounts to roughly £10 per month, from £40 to £50, but millions of households will experience even steeper rises. Southern Water customers are facing a 47% increase to £703 annually, while bills for Hafren Dyfrdwy and South West Water are rising by 32%. Thames Water customers have been warned of a 31% hike, and Yorkshire Water is raising bills by 29%. Bournemouth Water customers will also see a 32% increase in their bills.

Other factors, such as whether a customer has a water meter and their water consumption, will lead to considerable variations in bill changes for customers based on their specific circumstances. Bill increases for the next five years are being front-loaded, with a substantial increase this April to facilitate the initiation of spending on new infrastructure, such as new reservoirs. Water UK chief executive David Henderson stated, "We understand that 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."

Water companies also state that they will allocate more than £4 billion to fund social tariffs, which provide discounted bills for vulnerable people, over the next five years. However, the Consumer Council for Water (CCW), which represents bill payers, argues that the support is insufficient, as approximately 2.5 million households are already in debt to their water company. "These rises will place considerable pressure on millions of customers who are already having to make difficult choices," said its chief executive, Mike Keil.

"Customers want to see investment in improving services and cleaning up our rivers, but that cannot come at an unbearable cost to struggling households." The CCW stated that this is the largest increase in water bills since the privatization of the water industry 36 years ago. David Black, chief executive of Ofwat, said, "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."

"While bills are rising, the £104 billion investment we have approved over the next five years will accelerate the delivery of cleaner rivers and seas and help to secure long-term drinking water supplies for customers." Individual water companies offer a range of options to customers who are struggling to pay their bill, including debt support programs, financial hardship funds, or payment breaks.