Getty ImagesMillions of households in England and Wales will struggle to pay their water bills when water bills rise, the consumer watchdog has warned.
Water regulator Ofwat has tentatively said water bills will rise by an average of £19 a year, or 21%, between 2025 and 2030.
But a Consumer Council Water (CCW) survey of 9,500 households showed that about 18% said they were already struggling with their water bills, and 40% said they would be unable to afford the increases. cost.
Water companies said they were recommending increased support for struggling households to protect vulnerable customers.
Ofwat and the water company are locked in tense negotiations over how much to charge over five years from April next year.
In this major Consumer Council Water (CCW) investigation, customers in 19 water company areas have received proposed water bill increases adjusted for inflation.
About 40% of the 9,500 people surveyed said they were struggling to cope with rising bills. in:
- 54% said they had to cut back on non-essential items to pay for expenses
- 43% said they would use less water
- 38% said they would buy less food and other necessities
While 75 per cent of households surveyed supported the water company’s investment plans, this dropped to 58 per cent when they were reminded of the associated increase in water bills.
CCW chief executive Mike Keil said: “The increase in these bills will put an intolerable strain on the finances of millions of families.”
Every water company has a program that can help you reduce your bills if you have a lower income, but eligibility and support vary by company. The Convention on Certain Conventional Weapons calls for a single social tariff in England and Wales to end the so-called “postcode aid lottery”.
Ofwat and the Environment Agency are continuing to investigate all water companies in England and Wales The amount of sewage flowing into England’s lakes, rivers and seas more than doubled in 2023.
Mr Keir said customers wanted to see investment but also “need to see evidence that their money is being spent well” to repair trust in water companies.
In July this year, Ofwat provisionally said electricity bills would rise by an average of £19 a year between 2025 and 2030, for a total rise of £94 over the five-year period, or 21%. This increase does not include inflation.
Water tariff increases vary by region, with regulators agreeing a 44 per cent increase for Southern Water and an 11 per cent increase for Northumbrian Water.
Since July, some companies have requested further price increases. For example, Thames Water, the UK’s largest water company, was allowed to increase water bills by 23%. The company has since said it needs to raise its bills by 59% to stay afloat.
The BBC understands Ofwat is considering allowing some companies to increase their bills more significantly to reflect higher financing costs when a final decision is made in December.
British Water, which represents the industry, said in response to the CCW inquiry that companies wanted more help for customers facing rising water bills.
“We urgently need investment in water and wastewater infrastructure,” a spokesman said.
He added that surveys showed widespread public support for investment in ensuring water supplies and stopping sewage leaks.
“However, we know that increasing bills is never popular,” he said.
Ofwat said it would “give full consideration” to the findings of the CCW study.
A spokesperson said: “It is clear that the majority of customers accept the proposed investment and the increase in bills required to fund it, but it is vital that companies deliver on the meaningful benefits this investment is designed to deliver. improve.”
“Past performance has not been good enough. This is a challenge the company will need to address in the coming years – and we will be watching progress as closely as they do.”
