Average household water and sewerage bills in England and Wales are set to fall by around £2 (0.6%) in 2021/22. The average annual bill is forecast to come down from £410 to £408, although there will be variations from company to company.
The news comes as water companies continue to offer additional assistance to customers during the Covid-19 pandemic, with more than 1 million customers receiving reduced bills and more than 90,000 customers given payment breaks. By 2025, the number of customers receiving help to pay their bills is set to rise to at least 1.4 million by 2025.
Customers will continue to pay little more than £1 a day for world-class drinking water, reliable sewerage services and protection of the environment.
After inflation, average bills are around the same level that they were a decade ago -in contrast with large rises in bills in other areas such as energy and rail.
Commenting on the new figures, Water UK Chief Executive Christine McGourty said:
“Water companies are committed to giving customers good value for money and ensuring that anyone who needs help with their bills gets it.
“It’s been a difficult year for so many people, and water companies throughout have been actively seeking out customers who might benefit from extra support while continuing to deliver world class services and investing for the future.
“I would urge anyone who’s concerned about their bill to get in touch with their water company to see what help is available.”
Help for customers who find it difficult to pay their bills takes a number of forms – for example flexible payment methods, payment breaks or social tariffs, which are special discounts for people on a low income or receiving specific benefits.
Each water company provides its own support scheme, and some also run or assist charities which provide additional help. Help available includes the WaterSure scheme, which enables water companies to cap bills for low-income customers who use a lot of water for essential family or health reasons.
The average bill reduction comes in the second year of a 5-year business cycle for water companies. Water companies in England and Wales are investing about £10 billion in 2021-22, as part of a £51 billion investment package over the 5 years from 2020 to 2025.
More than a million low-income households receive ongoing help with water bills
Commenting on the new bills for 2021-22, the water sector consumer watchdog Consumer Council for Water (CCW) said that while more than a million low-income households are now receiving reduced bills through water company support schemes, large numbers are still missing out. CCW said that charges will also vary with millions of households in England and Wales still facing an increase.
According to CCW, even the smallest rise could prove a tipping point for people already on the brink of crisis due to Covid-19 and facing the prospect of other potential household bill increases at the start of the new financial year.
Emma Clancy, Chief Executive of CCW, said:
“While it’s good news the average water bill is set to fall that won’t be the case for millions of households who could see an increase at a time when they are already struggling to stay afloat.”
“Water is often overlooked when it comes to saving money but switching to a water meter or seeing if you’re eligible for your water company’s social tariff if you’re on a low income could potentially shave hundreds of pounds off your annual bill. That saving could help towards covering the cost of other household bills.”
CCW is urging low-income households should check to see if they’re eligible for their water company’s social tariff. These can substantially reduce the bills of customers who qualify for help - CCW has a guide to the tariffs on its website. Another scheme – WaterSure – can also cap the bills of metered customers who receive income-related benefits and have to use a lot of water due to a medical condition or having a large household.
The watchdog also suggested that customers who just need some breathing room with bills might want to consider joining more than 90,000 households who have already taken a payment break since the outbreak of Covid-19.
Click here to see household bills for 2021-22 on a company by company basis
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