Household water bills set to rise by £19 a year over the next five years

ITV News Business and Economics Editor Joel Hills reports on the rise of water bills for households

Water bills in England and Wales are set to rise by £19 a year on average over the next five years.

Equating to a £94 price hike over that period, it is a third less than the increase called for by water providers, according to draft proposals from Ofwat.

Estimates suggest that around two million households can't afford their current water bills, making the hike even less welcomed.

Water firms had initially proposed increases averaging £144 over five years.

For example, Thames Water’s proposed increase of £191 by 2030 has been reduced to £99, while Severn Trent’s proposed rise of £144 has been cut to £93.

Under the plans, Southern Water customers will face a £183 increase over five years, while Dwr Cymru customers’ bills will go up by £137 and Yorkshire Water customers will pay £107 more.

At the other end of the scale, Affinity customers will see just an £11 rise, while SES customers’ bills will fall by £34 on the previous five years.

Ofwat chief executive David Black said: “Customers want to see radical change in the way water companies care for the environment

“Let me be very clear to water companies – we will be closely scrutinising the delivery of their plans and will hold them to account to deliver real improvements to the environment and for customers and on their investment programmes.”

Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “Millions of people will feel upset and anxious at the prospect of these water bill rises and question the fairness of them given some water companies’ track record of failure and poor service.

“We estimate about two million households in England and Wales currently cannot afford their water bill and, while the increase in financial assistance is welcome, it falls short of what is needed."

Liberal Democrat Environment spokesperson Tim Farron said: “Any insulting price hikes by water companies must be blocked."

He added: “It is a national scandal that these disgraced firms are demanding more money from families and pensioners in a cost-of-living crisis, all whilst dumping raw sewage into our rivers.

“After years of Conservative Ministers letting these shameful polluters get away with it, we now need tough action, starting with a ban on bonuses and a block on large bill hikes.

“Communities spoke loudly at the election, demanding an end to the sewage scandal and water firms stuffing their pockets with bonuses and dividends. The government and regulator must listen to the country.”

The proposals are part of the 2024 Price Review (PR24) and cover the period from 1 April 2025 to 31 March 2030, ahead of a final decision at the end of the year.

Ofwat said the average 21% bill increase, around £19 per year, follows firms’ proposals to increase their total spending by £29 billion, split between a £5 billion increase in the core costs for running their business and a £24 billion rise in spending to meet requirements set by governments and for other environmental improvements.

Ofwat said its scrutiny of companies’ cost proposals, to ensure they deliver efficiently, had led to a £16 billion reduction.

However the proposed bill increases come amid public fury around firms’ rampant polluting of waterways with sewage spills as they continue to hand dividends to shareholders, and bonuses to executives – something which Labour has pledged to clamp down on.

Sewage spills into England’s rivers and seas more than doubled in 2023.

According to the Environment Agency, there were 3.6 million hours of spills last year – equal to about 400 years – compared with 1.75 million hours in 2022.

The large amount of water lost to leaks in the system also raises widespread concerns, particularly in dry periods when consumers face hosepipe bans.

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