The Consumer Council for Water (CCW) has warned many of the most financially vulnerable households will not be able to cope with a £123 (+26%) increase to the average household water and sewerage bill in England and Wales from 1 April.
The rise was confirmed today by Water UK and will take the average water and wastewater bill from £480 to £603.
The CCW has said that some households face even steeper rises with the increases for the main water and sewerage companies ranging from 19% to 47%. Other factors, such as whether a customer is metered and how much water they use, means the bill changes will vary considerably for customers depending on their circumstances.
The bill rises will fund much-needed investment to improve services for customers and to clean up our rivers and seas, but CCW is concerned about the impact these increases will have on millions of struggling households.
New research from CCW has laid bare the challenges already facing many bill-payers, with more than two in five (44%) revealing they have already reduced spending on essentials like food and heating to ensure they can afford household bills, including water. One in four (25%) households with a water meter said they had reduced what they considered to be essential water use to keep bills affordable.
Water companies are increasing financial assistance for customers struggling with their bills over the next five years, but CCW believes some companies have not shown enough ambition to ensure everyone can afford their water bill. Customers also continue to be faced with a postcode lottery of company social tariff schemes, which means the level of support and who is eligible varies considerably across England and Wales.
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), 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. Customers want to see investment in improving services and cleaning up our rivers but that can’t come at an unbearable cost to struggling households.”
“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.”
As part of its latest research, CCW also delved more deeply into the experiences of people trying to manage household bills on a low income. Many described feeling overwhelmed by stress and anxiety – even to the point of despair. There was also growing isolation, as financial hardship made socialising nearly impossible.
One participant said: “The stress on my mental health of trying to survive financially. It’s been wearing me down for two years now, and it’s got to the point where I literally can’t cope any more.”
However, those that had reached out for support from their water company with bills said they had found the process straightforward and the help they received had made a tangible difference.
In response to Water UK’s announcement about bill changes for 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. While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2025/26 will be 26% or £123. 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 £104bn 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. This is an ambitious programme of work, and we now need to see companies deliver significant improvement in performance for customers and the environment. Where companies underperform, or investment isn’t delivered, we will hold companies to account and protect customers.”
