Water bills to rise more than expected over next 5 years

Water bills are set to rise more than predicted over the next five years to cover rising costs and improvements needed in water systems.

The government is planning a major overhaul of the water industry, the biggest since it was privatised in the late 1980s.

The aim is to strike a balance between protecting customers from rising bills and having the funds to address:

• the growing population
• climate change effects
• old infrastructure

Ofwat, the regulator, will set the new bill amounts.

How much are bills going up by?

In July, Ofwat suggested an average yearly increase of £19 between 2025 and 2030. This adds up to £94 overall, which is a 21% hike.

How much water prices will go up by will vary for different water companies:

• Southern Water – 44%
• Affinity Water – 6%
• Thames Water – 23% – though they want to hike bills by 59%

But it could be higher – the final decision will be made later this year.

Caught in a catch-22

No one’s happy with the water industry at the moment. Customers are upset about pollution and leaks, while investors feel current bills don’t encourage enough investment.

Poor performance by some companies has led to fines, which means less money for the repairs that would fix the problems they’re being fined for. 

Finding a balance

A new independent commission advising the government on the best way forward will be announced on 23 October.

With bills on the rise, many hope the commission will bring fresh ideas.

They will gather feedback from customers, environmental groups and engineers to find a balance between affordable bills and needed investment.

Struggling to pay your water bills?

If you're having a tough time paying your water bills, you're not alone. Many people are facing high utility costs.

Fortunately, there are ways to manage your bills and avoid debt.

Start by talking to your water company. They usually have support schemes and payment plans for those in need.

They may help you spread your payments over a longer period, offer discounts based on your income, or give advice on how to use less water.

If you receive certain benefits, like universal credit or housing benefit, and have a water meter, consider applying for your provider’s WaterSure scheme.

This will reduce your water bill to the average, even if you use more water.

To qualify, you must have either:

• three or more children under 19
• someone in your home with a medical condition requiring extra water

Find your water provider using Water UK’s postcode checker, then search for ‘WaterSure’ for more details.

Think about getting a water meter if you don’t already have one.

With a meter, you pay for the water you actually use, which can save you money.

This is especially useful for smaller households. Many water companies install meters for free, so it’s worth checking with yours.

If you’re behind on your water payments and are struggling with other debts, free debt advice is available.

We can help you find a suitable debt solution (some are free and there’s a fee for others) and check that you’re claiming all the financial support you’re eligible for.