Why are water bills rising and what can I do?

Water bills in England and Wales will rise by an average of £86 in the year from April 2025, industry regulator Ofwat has said.

The increase, which varies according to where customers live, is to help water companies pay for problems including sewage leaks.

Average water bills will rise by 36% between 2025 and 2030.

The increases will average out to £31 per year, but Ofwat said firms are expected to introduce higher increases in the first year.

Individual water companies decide how much to charge customers, although Ofwat sets limits.

Most people in England and Wales get their water from one of 17 companies and have their waste water taken away by one of 11 firms.

Households cannot choose a supplier – it is down to where you live.

Price rises vary between regions. Southern Water customers will be hit by the biggest increase, with bills going up 53% – to £642 on average – by 2030.

Wessex and Northumbrian Water bills will go up by the smallest amount – 21%.

Thames Water, which is struggling financially, will be able to charge customers 35% more, with bills going up to £588.

Every five years Ofwat sets out the levels of service which customers can expect and how much it will cost to keep firms running efficiently.

Ofwat’s announcement – or “final determination” – for water bills between April 2025 and 2030 has been calculated without inflation, meaning actual bills are likely to be higher.

In July, Ofwat had suggested raising bills by an average of 21%, but the water industry insisted this was not enough to tackle the range of problems water companies face.

Firms said they needed extra money to replace ageing, leaking pipes and to reduce sewage discharges into rivers and seas.

Water UK, which represents water firms, said the 36% increase would provide “much-needed” investment for the sector.

However, companies are also facing increasing scrutiny and public anger over their environmental and financial performance, as well as executive bonuses and pay.

Households in England and Wales are typically billed for water in one of two ways:

• Unmetered customers pay a set amount for their water and sewage services, regardless of how much water they use. This is usually based on the rateable value of their home – an approximate annual rental value of a property
• Metered customers only pay for what they use. They have readings from their water meters collected by the water company

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.

Use less water: Many water companies offer customers free water-saving devices. Look out for unexplained increases in your bills – it may mean you 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, the water company must offer something called an “assessed charge” which may also save you money.

Move to a social tariff: 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.

Before the price rise was announced, the Consumer Council for Water (CCW) surveyed 9,500 households across 19 water company areas, and found:

• 18% were already struggling to pay their bills
• 40% would find it difficult to pay more

CCW chief executive Mike Keil warned significant price increases would put an “intolerable strain” on the finances of millions.

Water UK said companies wanted to provide more support to customers, but needed greater investment to allow them to improve services.

Record numbers sought help with their bills in 2023-2024, according to figures seen by the BBC.

The amount of financial support available 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.

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.

A small number of Scottish households have water meters. However, most pay for water and sewerage services as part of their council tax, with charges linked to their council tax band.

Average bills will rise by £35.95 in 2024/25, according to Scottish Water.

Someone living in a council tax band C property will pay on average £485.68 for water and sewerage services.

Households in Northern Ireland are not billed for water.