If you thought your water bill was already a bit steep, brace yourself. From 1 April, households in England and Wales will see their water bills rise by an average of £123 – the largest increase since the industry was privatised 36 years ago. That’s right, your annual bill is jumping from £480 to £603. And no, this isn’t an April Fool’s joke.
Why the Big Increase?
Water companies say the hike is necessary to fund a £104 billion investment programme to replace ageing infrastructure and tackle the UK’s sewage pollution crisis. But let’s be honest, it’s hard to swallow when you’re already juggling rising energy costs, food prices, and everything else life throws at you.
The rise is even higher than the £86 predicted by regulator Ofwat back in December. Why? Because water companies have added inflation on top. Because of course they have.
Who’s Hit the Hardest?
Some regions are facing even steeper increases. Customers of Southern Water (covering parts of Hampshire and Kent) will see their bills rise by a whopping 47%, taking the average bill to a record £703. Ouch.
Other big hitters include:
- South West Water: Up 32% to £686
- Thames Water: Up 31% to £639
- Yorkshire Water: Up 29% to £602
And this isn’t a one-off. Bills are expected to keep rising over the next five years, with an average increase of 36% before inflation. So, if you’re already feeling the pinch, it’s time to start saving those pennies.
What Are You Paying For?
Water UK, the industry body, says the money will go towards improving services, reducing sewage spills, and upgrading infrastructure. They’ve also promised that more than 3 million households will receive financial support, with reduced bills and other help worth up to £4.1 billion over the next five years.
But let’s not forget, some water companies have been criticised for their track record on sewage pollution and executive pay. So, while you’re paying more, you might be wondering if they’re doing enough in return.
The Human Cost
Mike Keil, chief executive of the Consumer Council for Water (CCW), didn’t mince his words. “These rises are the largest we’ve seen since privatisation and will heap considerable pressure on millions of customers who are already having to make difficult choices,” he said.
He also pointed out that 2.5 million households are already in debt to their water company, and this number could grow without better financial support. “A single social tariff scheme is urgently needed,” he added.
What About the Companies?
While households tighten their belts, some water companies are increasing dividend payments to investors. Pennon (owner of South West Water) and United Utilities have both announced higher payouts as they prepare to hike bills.
Meanwhile, Southern Water is drowning in £6 billion of debt, and Thames Water is fighting to avoid bankruptcy. The latter is seeking £3 billion in emergency funds, with a high court decision due soon.
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