Water bill rises will leave millions struggling

Around 18% of households already struggle with water bills a Consumer Council for Water (CCW) survey found, which could rise to 40% when prices increase. Of these, 43% said they would use less water, 54% would cut back on non-essentials and 38% would cut back on food shopping and other essentials to pay.

Mike Keil, Chief Executive of the CCW, said: “These bill increases would put an intolerable strain on the finances of millions of households… It’s quite frightening the extent to which water affordability is going to affect people in the future.”

An Ofwat spokesperson said: “We are acutely aware that any rise in water bills will have an impact on customers, especially the vulnerable… we are already working with CCW, water companies and charities to improve companies’ support for customers who are struggling to pay.”

Water companies intend to increase support for struggling households to protect vulnerable customers, with schemes to help reduce bills for those on a low income; however, eligibility and support varies by company which the CCW calls a "postcode lottery of support".

Keil said the current system should be: “revamped and replaced with a much more fair system of social tariffs so it is consistent across England and Wales, which means that everyone who is struggling can be assured that that safety net is in place and support is there if they need it.”

“From the research it is also clear the majority of customers accepted the investment being proposed and the increase in bills needed to fund it, but it is crucial companies deliver the meaningful improvements this investment is designed to bring.”

With many companies under Ofwat and the Environment Agency scrutiny after sewage spills more than doubled in 2023, customers were broadly supportive of how their money would be spent to tackle issues like curbing leakage and reducing pollution into rivers, lakes and seas.

An Ofwat spokesperson said: “From the research it is also clear the majority of customers accepted the investment being proposed and the increase in bills needed to fund it, but it is crucial companies deliver the meaningful improvements this investment is designed to bring.”

However, companies have requested further increases to reflect higher financing costs, with Thames Water, who were advised to increase bills by 23%, requesting a 59% increase to improve infrastructure and improve services by 2030. Ofwat will make a final decision in December.

In October, the government launched an independent water commission to review the sector and its regulation since privatisation, to ensure a sufficiently robust and stable regulatory framework to secure investment to clean up waterways. 

Mark Elliott, CIEH President, said: "A wholesome adequate water supply is a human right. Rising water bills will deepen consumer dismay, highlighting the urgent need for equitable solutions that balance public health, environmental sustainability, and affordability. Water companies are public utility monopolies and as such require stringent regulation to ensure appropriate and adequate safeguards. The new Independent Water Commission in reviewing the water industry needs to recognise first and foremost that water is not a commodity, it is a resource necessary for sustaining life and ensuring good public and environmental health practices."