News

Water Customers To See 26 percent Hike In Bills

A water bill increase has been expected for some time now, with utility companies originally asking industry regulator Ofwat for hikes of between 24 per cent and 91 per cent over the next five years… and it’s now been confirmed that average monthly bills are set to rise by 26 per cent from April 2025.

While this is undoubtedly welcome news for many, with finances already very stretched as a result of the rising cost of living, trade association Water UK has also announced that support for low-income households will be increased to their highest levels ever, with over three million households due to receive reduced bills and other financial support over the next five years.

Furthermore, water companies are set to invest £20 billion between 2025 and 2026 to help drive economic growth, build more homes, shore up water supplies and bring an end to sewage being discharged into rivers, lakes, streams and coastal waters, all of which will be funded by this latest round of bill increases.

Social tariffs

Those households most in need will either receive WaterSure charges or social tariffs to help them reduce their water bills. There will also be other support measures in place to help customers who are struggling to pay their bills, including debt forgiveness and payment breaks.

If you are concerned about making payments, it is advised to get in touch with your water supplier directly.

Record investment

Between April 2025 and March 2026, water companies will invest approximately £20 billion as part of a five-year funding wave worth £104 billion up to 2030.

This will see nine new reservoirs constructed and nine new water transfer schemes set up, as well as 1,700 wastewater treatment works upgraded to help reduce pollution and improve and protect over 15,000 kilometres of rivers throughout England and Wales.

There may well be fears that these bill increases will go towards shareholder dividends or paying down debt considering the recent actions of some utility companies and chronic underinvestment in the network, but the government has taken steps to make sure that the funds raised through bill hikes will only be used to pay for measures that are genuinely new and genuinely needed.

If water companies fail to deliver these improvements, customer bills will then automatically be reduced by Ofwat.

David Henderson, chief executive with Water UK, said: “We understand 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.

“This is why water companies are more than doubling the level of financial support for customers with £4.1 billion to be made available over the next five years. Water companies will invest a record £20 billion in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”

Ofwat comment

In response to the trade body’s bill hike announcement, David Black – Ofwat chief executive – said that the watchdog has called on water companies to double the amount of support available over the next five years, strongly encouraging customers finding it hard to pay their bills to contact their supplier in order to access this.

He went on to say: “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.”

How can businesses save money on their water bills?

If, as a business, you’re concerned about bill increases at this time, you could consider having a water audit of your site carried out.

This will reveal how and where you use water, allowing you to identify the best water-saving solutions, solutions that can be adjusted over time in line with the changing needs of your organisation.

If you’d like to find out more about how you could benefit from an audit and which water conservation methods would be most appropriate for you, get in touch with the team here at H2o Building Services today.