Average £123 bill increase for everyone from April while some pay more

Water Bills Set to Increase Across England and Wales in April
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Households in England and Wales are bracing themselves for a significant hike in their water bills come April 1. The anticipated rise, confirmed by industry body Water UK, will see an average increase of £123 or 26% to yearly water bills. This means that the average water and wastewater bill will jump from £480 to £603 for the next year, equivalent to an increase of around £10 per month, from £40 to £50.

However, not all customers will be facing the same increase, as some regions will see even steeper rises. For instance, Southern Water customers have been informed that they will be hit with a massive 47% increase, while Hafren Dyfrdwy and South West Water bills will rise by 32%. Thames Water customers are facing a 31% hike, Yorkshire Water bills will increase by 29%, and Bournemouth Water customers will see a 32% jump in their bills.

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The variations in bill increases are attributed to factors such as whether a customer has a meter and their water usage level. These hikes surpass those initially announced by Ofwat in its new five-year price limits for water firms just before Christmas, as they also consider inflation in their calculations.

The Consumer Council for Water (CCW) has raised concerns about the impact of these increases on struggling households, calling for more robust support measures. CCW emphasised the need for fairer assistance to shield households from what is deemed the most significant rise in water bills since the privatisation of the water industry 36 years ago.
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In response to the impending bill hikes, Water UK highlighted that firms would be investing approximately £20 billion from April 2025 to March 2026, the highest single-year expenditure ever recorded. Additionally, a five-year investment programme worth £104 billion up to 2030 is on the horizon, focusing on initiatives such as building new reservoirs and water transfer schemes, upgrading wastewater treatment works, and enhancing rivers’ quality across England and Wales.

Acknowledging the financial strain that these increases may have on customers, Water UK advised affected individuals to reach out to their water companies directly to explore available support options. Furthermore, despite the impending bill hikes, Water UK reassured customers that water bills are only approximately 5% higher in real terms than they were in 2010.

CCW urged for a more uniform approach to social tariff schemes to ensure consistent and equitable support for customers across different regions. The organisation raised alarm about the risk of growing household debt to water companies, which currently stands at around 2.5 million households, emphasising the importance of robust financial assistance strategies.

Amidst concerns about sewage spills and historic underinvestment in water infrastructure, certain water companies have faced criticism for prioritising dividends to shareholders over essential investments. Calls have been made for a reevaluation of the current water industry structure to ensure sustainable practices and adequate support for consumers.

As households gear up for these impending bill increases, the debate on the balance between necessary investments in water infrastructure and the affordability of water services for consumers continues to unfold. The impact of these hikes on households across England and Wales remains a key point of contention, with stakeholders advocating for transparent and equitable solutions to address the growing financial pressures on consumers.