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Millions of homes in England and Wales will struggle to pay their water bills when they rise, a consumer watchdog has warned.
The water regulator, Ofwat, provisionally said bills would rise by an average of £19 a year – or 21% – between 2025 and 2030.
But in a survey of 9,500 households by the Consumers' Council for Water (CCW), around 18% said they were already struggling with their bills and 40% said they would struggle to cope with these increases.
Water companies said they were offering increased support for struggling households to protect vulnerable customers.
Ofwat and water companies are engaged in tense negotiations over how much they can charge for the five years from April next year.
In this major survey by the Consumers' Council for Water (CCW), customers in 19 water company areas were presented with proposed bill increases, adjusted for inflation.
Around 40% of the 9,500 people surveyed said they would find it difficult to bear the rising bills. Among these:
54% said they would have to cut non-essential spending to pay for this. 43% said they would use less water. 38% said they would cut back on grocery shopping and other essentials.
While 75% of households surveyed supported their water company's investment plans, this fell to 58% when they were reminded of the associated bill increases.
Mike Keil, chief executive of the CCW, said: “These bill increases would put intolerable pressure on the finances of millions of households. »
Every water company has a program that can help you reduce your bills if you're on a low income, but eligibility and support varies by company. The CCW is calling for a single welfare rate across England and Wales to end what it calls a “postcode welfare lottery”.
Ofwat and Environment Agency continue investigations into all water companies in England and Wales after sewage discharge into England's lakes, rivers and seas more than doubles in 2023 .
Mr Keil said customers want to see investment but also “need to see proof their money is well spent” to restore confidence in water companies.
In July, Ofwat provisionally said bills would rise by an average of £19 a year between 2025 and 2030, a total increase of £94, or a 21% increase, over that five-year period. This increase does not include inflation.
The bill increase varies by region, with the regulator agreeing an increase of 44% for Southern Water and 11% for Northumbrian Water.
Since July, some companies have been asking for new increases. For example, Thames Water, the UK's largest water company, was given the green light to increase its bills by 23%. The company has since said it has to increase its bills by 59% to continue operating normally.
The BBC understands that Ofwat is considering allowing larger increases in some companies' bills when it makes its final decision in December, to reflect higher financing costs.
In response to the CCW investigation, Water UK, which represents the sector, said companies wanted to provide more help to customers facing rising bills.
“We urgently need investment in our water and sanitation infrastructure,” a spokesperson said.
He said the survey showed there was broad public support for investments to secure water supplies and stop wastewater spills.
“However, we understand that an increase in bills is never welcome,” he said.
Ofwat said it would “fully consider” the findings of the CCW’s research.
“It is also clear that the majority of customers have accepted the proposed investment and the increased bills required to finance it, but it is crucial that businesses make the significant improvements that this investment is intended to deliver,” said a door -speech.
“Past performance has not been good enough. This is the challenge businesses will face in the years to come – and we will monitor progress closely as they do.”
