Analysis by Outra shows 14 regional water companies in England and Wales risk a total of £2.13 billion in unpaid bills over next year

Water providers across England and Wales are at risk of a £2.13 billion shortfall over the next year because financially vulnerable households using the suppliers are in danger of falling behind on payments. 

Analysis from data science company Outra has shown that the average monthly water bill of £38 could pose an issue to over 4.6 million households in England and Wales.

The research, which looked at 14 regional water companies across England and Wales, identified that customers in Severn Trent Water and Northumbrian Water’s catchment areas are the most financially vulnerable to water bill hikes.

Severn Trent Water has 939,000 financially vulnerable households within its catchment area— more than any other water company— whilst Northumbrian Water is the body with the most risk, with 36 percent of their households deemed financially vulnerable. Both water companies have announced plans to increase their monthly water bills this April by 7.2 percent and 7.5 percent respectively.

Peter Jackson, Chief Data Officer at Outra said:

“In the aftermath of chancellor Jeremy Hunt’s spring budget, the British public will see a significant change in the support available to them to help contend with the ongoing cost-of-living crisis.

“Water companies plan on hiking their prices at the same time as household support is reduced due to the government’s stripping back of the energy price guarantee (EPG).

“It is illegal for water companies to disconnect the water supply of domestic customers, meaning that it will be water companies who will suffer the brunt of unpaid bills, over gas or electric companies.”