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Water bills in England and Wales will rise by an average of £123 a year from April.
The average annual bill will be £603, but there are significant differences between water companies. Households cannot choose their supplier.
How can I find my water supplier?The average bill increase is around £10 a month – from £40 to £50 – but millions of households face even steeper rises.
Southern Water customers will see a 47% increase to £703 a year while Hafren Dyfrdwy and South West Water bills are rising by 32%.
Thames Water customers have been warned they will see a 31% hike and Yorkshire Water is raising bills by 29%.
Bournemouth Water customers will see a 32% increase to their bills.
Why are water bills going up?
Firms say they need extra money to replace ageing, leaking pipes and to reduce sewage discharges into rivers and seas.
However, companies are also facing increasing scrutiny and public anger over their environmental and financial performance, as well as executive bonuses and pay.
There has been a lot of disagreement about price rises between companies and the water regulator Ofwat.
In December, Ofwat said companies could raise bills by an average of £31 a year over the next five years, with those increases to be front-loaded.
That means customers will face the biggest rise in the first year of the period, and smaller increases in the subsequent four years.
Water companies say that will start in April with a £123 average rise on an annual bill – partly to take account of inflation, which was not included in Ofwat’s December calculation.
How can I save money on my water bill?
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Some households in England and Wales have a water meter, so only pay for the amount they use, plus a standing charge.
Unmetered customers pay a set amount regardless of how much water they use. This is usually based on the rateable value of their home – an approximate annual rental value for the property.
All households also pay for sewerage services, either as part of their water bill or separately if their water company doesn’t deliver wastewater services.
Ofwat: Your water billThere are a number of ways to try to reduce your water bill:
Use less water: Many water companies offer customers free water-saving devices. Take showers instead of baths and use a timer. Only run washing machines and dishwashers with full loads. Don’t overfill your kettle. If you water your garden, install a water butt to capture rainwater.
Check your bill: Look out for any unexplained increases – you may have a leak.
Get a water meter: Meters can reduce bills for some. Every household can apply to have one installed. If a meter is not suitable, your water company must offer something called an “assessed charge” which may also save you money.
Every water company offers a scheme which can help reduce your bills if you’re on a low income but the each firm’s rules are different.
Sewage service rebates: Households may be able to get a rebate for certain sewage services if they can prove they do not use them.
Energy Saving Trust: Simple ways to save waterConsumer Council for Water: Tips to cut your water billWhat if I can’t pay my water bill?
Water companies say they will also set aside more than £4bn to fund social tariffs – the discounted bills for vulnerable people – over the next five years.
But the Consumer Council for Water (CCW), which represents billpayers, said support did not go far enough, as about 2.5 million households were already in debt to their water company.
The amount of financial support available to those struggling and the qualifying criteria vary by company.
The CCW wants all firms to have a single scheme so that everyone gets the same help wherever they live.
Ofwat: Customer assistanceConsumer Council for Water: Help with billsHow much have water companies been fined for poor performance?
As part of its price review, Ofwat sets performance targets to encourage water companies to meet their commitments to customers and the environment.
They are expected to reduce leakage, pollution incidents and sewer flooding.
If a company beats its targets it may get a financial reward. If it does not meet them, it may face a penalty.
The companies reflect these costs in annual adjustments to customer bills.
In 2024-25 water companies will have to repay £114m.
How much are water bills in Scotland and Northern Ireland?
