Are you owed compensation from your water provider?

Water companies have been told they must pay customers more than £157m in compensation by the industry regulator.

Ofwat said the money will come off bills for households and businesses in 2025-26, with the total amount to be repaid set to be decided in December.

It ordered the compensation after deciding the performance of water companies in England and Wales was ‘disappointing’ last year.

It added that money alone was not enough to address the problems facing the industry. And warned that water companies were falling further behind on targets, with nine out of 11 suppliers reporting an increase in ‘pollution incidents’ in 2023.

This year’s announcement of compensation follows action taken last year where water companies were ordered to repay £114m.

The average water bill is set to rise by £94 over the next five years.

Ofwat sets a limit on how much bills can rise but it is up to individual water companies to decide how much to charge households.

The most expensive water providers include Southern Water and Dwr Cymru where the average annual bill costs households £603. And the companies that charge the least for water include Portsmouth Water (£135 a year on average), South Staffs Water (£183) and ES Water (£187).

Households can’t choose which supplier they use – it’s a postcode lottery that’s decided by where you live.

What help is available if you’re struggling to pay your water bills?

If you're having trouble affording your water bills, you're not alone. Many households struggle to keep up with the rising costs of essential utilities like water. There are a number of options available to help you manage your water bills and avoid falling into debt.

Speak to your water company

If you’re struggling to afford your water bills, you should speak to your provider. Most water companies in the UK offer support schemes and payment plans for customers experiencing financial difficulties. They may be able to:

• Arrange a payment plan to spread the cost of your bills over a longer period
• Provide a discount on your water bills based on your income and circumstances
• Offer advice on reducing your water usage to lower your bills

Don't be afraid to reach out to your water company. They are there to help and will work with you to find a solution.

Apply for the WaterSure scheme

If you receive certain benefits and have a water meter, you may be eligible for the WaterSure scheme. This scheme caps your water bills at the average household bill for your water company, even if you use more than the average amount of water. To qualify, you must receive one of the following benefits:

• Universal Credit
• Housing Benefit
• Income Support
• Income-based Jobseeker's Allowance
• Working Tax Credit
• Child Tax Credit
• Pension Credit
• Income-related Employment and Support Allowance

You must also either have three or more children under the age of 19 living in your household or live with someone with a medical condition that needs a higher usage of water. If you think you might be eligible, contact your water company to apply for the WaterSure scheme.

Get free debt help

If you are behind on your water payments and are struggling with other debts, there is free debt help available. We can help with finding the right debt solution for you and check that you’re claiming all the financial support your eligible for.

Could a water meter help?

If you don't already have a water meter, installing one could help you save money on your water bills. With a water meter, you only pay for the water you use, rather than a fixed rate based on the rateable value of your property. This can be especially worthwhile for smaller households or those who use less water than average.

Many water companies offer free water meter installation, so it's worth contacting yours to see if you could benefit from switching.