Household water bills set to rise for millions of UK customers
There is a 5.4 percent increase in water bills for households in England and Wales compared to April.
This increase, equivalent to an average of £33 per household per year, is two percentage points above the current rate of inflation.
Water UK said the increase was necessary as companies prepared to invest £20bn between 2026 and 2027.
This significant investment aims to increase water resources and solve the problem of sewage discharge into rivers and seas.
Public anger has grown over the widespread pollution of waterways, especially as firms scramble to fund improvements following decades of perceived underinvestment.
Regulator Ofwat has sanctioned water companies to increase their bills by 36 per cent between 2025 and 2030; a significant portion of this (20 per cent, or an average of £86) was applied to last April’s annual increase.
The Consumer Council for Water (CCW) has warned that customers are “impatient for change and need to see convincing evidence that their money is being well spent”.
There are significant regional differences in bill increases; Severn Trent customers are seeing a 10 per cent increase, while Sutton and East Surrey are predicting an 11 per cent increase, Bristol Water is showing a 12 per cent increase and Affinity Water (midrange) customers are warning a 13 per cent increase is coming.
South East Water is increasing its bills by an average of 7 per cent a year to £324 a year after blaming Storm Goretti for burst pipes and power cuts after customers suffered days of supply disruption this month, following a similar incident in Tunbridge Wells last month when 24,000 people were left without drinking water for two weeks.
Water UK said cash from water bills could only be used to fund infrastructure that was independently determined to be “new, necessary and value for money”.
It was stated that the money-back guarantee means that customer invoices will be automatically refunded by the issuer if improvements are not made.
More than two million households currently receive help with their bills through social tariffs, the WaterSure scheme and other affordability measures, and this number is expected to increase by a further 300,000 households next year.
Water UK chief executive David Henderson said: “We recognize rising bills are never welcome, but money is needed to fund vital improvements to secure our water supplies, support economic growth and stop sewage entering our rivers and seas.
“While we urgently need investment in our water and sanitation infrastructure, we know this increase will be difficult for many people, so we will help around 2.5 million households – more than ever before – with an average reduction of around 40 per cent on their water bills.”
The CCW said it had seen a 51 per cent increase in complaints about water companies in 2025, driven mainly by affordability concerns, and expressed regret at the scale of the increase last April.
Mike Keil, CCW chief executive, said: “We have seen complaints to CCW about the affordability of water bills almost triple in the last year and further bill increases will increase people’s concerns.
“People support investment in improving services but are impatient for change and need to see convincing evidence that their money is being well spent.
“A stronger safety net is also needed for those who cannot afford these bill increases. Our independent review of water affordability in 2021 made clear that a single universal social tariff would ensure financial support flows to where it is needed most. The postcode financial aid lottery created by existing water companies’ social tariffs is unfair and unsustainable in the face of rising water bills.”
Ofwat interim chief executive Chris Walters said: “By April 2027, we expect water companies to install more than eight million water meters in homes to help customers manage their bills, replace nearly 3,000 kilometers of pipelines to ensure customers experience fewer supply disruptions, and reduce sewage leaks from storm floods by 30 per cent from 2024 levels.
“These are just three examples of what will help us achieve our collective goal of cleaner rivers and seas, more resilient water resources and better services for customers and the environment.
“However, we also recognize that these bill increases may be difficult for some people. That’s why we’ve approved doubling existing company support for customers struggling to pay, with more than two million households now accessing this help.”
Surfers Against Sewage campaign manager Rob Abrams said: “Almost a third of our water bills are spent servicing the water company’s debt pile and delivering dividends while we get sick from sewage.
“So why should we believe this time will be different?
“Water is not a commodity, it is a necessity. However, as sewage is pumped into our waters, it is being milked for profit.
“This broken system rewards greed and failure, and the only solution is a complete reset of the system to prioritize people and planet. Anything less won’t do.”
River Action chief executive James Wallace said: “When the water sector boasts of ‘record investment’ it actually means ratepayers, not water companies, are being forced to foot the bill for decades of failure.
“The privatized, for-profit model of pollution has failed. Until water companies are owned and managed for the public and environmental benefit using long-term patient capital, we will continue to see regulatory failures and pollution of rivers.”
