Water bills rise below inflation

Water bills for customers in England and Wales are set to rise by an average of 7.5% from April, the sector has announced.

The average water and sewerage bill will go up by £31 for the year to £448. The average water bill will be £215 (an increase of £16) and the average sewerage bill will be £233 (up £15). Last year the sector average increase of 1.7% brought combined bills to £417.

This represents the single largest jump in bills since 2005, but companies have kept the increases below inflation.

Discrepancies between organisations mean customers in Wessex’s region will be paying up to £504, compared to £470 in 2022. The lowest bills are once again at Hafren Dyfrdwy, which sees charges rise to £372 from £334 last year.

For 2022, many customers saw bills fall year-on-year, but this year companies have not been able to offer reductions. Water only charges for Portsmouth Water customers remain the sector’s lowest at £117.

For the 2020 to 2025 period, Ofwat challenged companies to lower customer bills before inflation over the five years. November CPIH inflation, which regulators set as the benchmark, was 9.3%.

The regulator together with CCW has reinforced its expectations for the sector to ensure affordability support is clear and accessible for billpayers who most need it.

Companies now offer bill relief in various packages to more than 1.2 million domestic customers, with an additional £200 million being spent by companies to support households.

“With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill. However, we know that any increase is unwelcome, particularly at the moment,” Stuart Colville, Water UK director of policy, said.

“Next year’s bills will support what is already the highest level of investment on record, with a further £70 billion set to be spent over coming years on building new reservoirs and ending overflows into rivers.”

Available support is different company-to-company, which is something the sector hoped to address with a single nationwide social tariff. Despite near widespread support, government has yet to consult on its implementation. The current secretary of state for Environment, Food and Rural Affairs recently stated she was not minded to pursue a new single scheme.

Jess Cook, water poverty lead at National Energy Action (NEA), said: “The current postcode lottery means where you live affects what you pay and what support you receive, and the Secretary of State, Thérèse Coffey, has suggested that fixing this is not one of her top priorities. With water bills rising 7.5% on average during this cost-of-living crisis, it’s more vital than ever that access to a social tariff should be made fairer, more consistent, and accessible to everyone who needs it, regardless of where they live.”

Ofwat chief executive, David Black, added that companies should be “doubling down to support those who need a helping hand”. He said: “Kind words don’t mean anything unless they are backed up by action, which is why we were pleased to see the recent increase in support.”