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Water bills in England and Wales will rise by an average of £86 a year from April 2025, industry regulator Ofwat has said.
The increase, which varies depending on where customers live, is intended to help water companies pay for problems including sewage leaks.
How much will I pay for my water in England and Wales?
Average water bills will increase by 36% between 2025 and 2030.
The increases will average £31 a year, but Ofwat said businesses should introduce higher increases in the first year.
Each water company decides how much it charges its customers, although Ofwat sets limits.
Most people in England and Wales get their water from one of the 17 companies and have their wastewater disposed of by one of the 11 companies.
Households cannot choose a supplier: it depends on where you live.
Price increases vary by region. Southern Water customers will be hit by the biggest increase, with bills rising by 53% – to £642 on average – by 2030.
Water bills in Wessex and Northumbrian will rise as little as possible – 21%.
Financially struggling Thames Water will be able to charge customers 35% more, with bills reaching up to £588.
Every five years Ofwat sets out the service levels customers can expect and how much it will cost to keep businesses operating efficiently.
Ofwat's announcement – or 'final determination' – for water bills between April 2025 and 2030 was calculated without inflation, meaning actual bills are likely to be higher.
Why are water bills increasing?
In July, Ofwat suggested increasing bills by 21% on average, but the water sector insisted this was not enough to solve the full range of problems facing water companies .
Companies said they needed extra money to replace aging and leaking pipes and to reduce wastewater discharges into rivers and seas.
Water UK, which represents water companies, said the 36% increase would provide “much-needed” investment in the sector.
However, companies also face increased scrutiny and public anger over their environmental and financial performance, as well as their executives' bonuses and compensation.
How are water bills calculated in England and Wales?
Households in England and Wales are generally charged for water in one of two ways:
Unmetered customers pay a fixed amount for their water and sewer services, regardless of how much water they use. This is usually based on the assessed 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 sanitation services, either as part of their water bill or separately if their water company does not provide sanitation services.
How can I save money on my water bill?
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Use less water: Many water companies offer water-saving devices to their customers free of charge. Watch out for unexplained increases in your bills – this could mean there's a leak.
Get a water meter: Meters can reduce bills for some. Each household can request to have one installed. If a meter is not suitable, the water company must offer what is called an 'assessed charge' which can also save you money.
Switch to a social tariff: Each water company offers a program that can help you reduce your bills if you are on a low income, but each company's rules are different.
Sewer Service Rebates: Households can receive a rebate for certain sewer services if they can prove they are not using them.
What should I do if I can't pay my water bill?
Before the price hike was announced, the Consumer Council for Water (CCW) surveyed 9,500 households in 19 water company areas and found:
18% were already struggling to pay their bills. 40% would have difficulty paying more.
CCW chief executive Mike Keil warned that significant price rises would put “intolerable pressure” on the finances of millions of people.
Water UK said companies wanted to provide more support to customers but needed more investment to enable them to improve their services.
A record number of people have asked for help to pay their bills in 2023-24, according to figures seen by the BBC.
The amount of financial assistance available and eligibility criteria vary by company.
CCW wants all businesses to have a single system so that everyone receives the same help, no matter where they live.
How much have water companies been fined for poor performance?
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 leaks, pollution incidents and sewer flooding.
If a company exceeds its goals, it can get a financial reward. If he does not respect them, he is exposed to a penalty.
Companies reflect these costs in annual adjustments to customer bills.
In 2024-25, water companies will have to repay £114 million.
How much are water bills in Scotland and Northern Ireland?
A small number of Scottish homes 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 increase by £35.95 in 2024/25, according to Scottish Water.
A person 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 charged for water.
