Water UK, the body which represents all the Uk water companies, has announced that from April, average water bills will again increase by less than inflation.

According to Water UK, this means prices will continue their decade-long fall in real terms, with bills rising by an average of £31 to £448 a year (equivalent to around 60p more each week).

In addition, support for low-income households is also being increased to its highest level ever. More than 1 million households already receive help with water bills, which is being increased to 1.2 million over the coming months.

According to Water UK, this means prices will continue their decade-long fall in real terms, with bills rising by an average of £31 to £448 a year (equivalent to around 60p more each week).

In addition, support for low-income households is also being increased to its highest level ever. More than 1 million households already receive help with water bills, which is being increased to 1.2 million over the coming months.

The industry body said that bills are helping to fund the highest level of investment in history into the UK’s water and sewage systems – more than any other country in Europe.

Water companies are set to build on what is already the highest-ever level of investment in the English water sector with a further £70 billion to eliminate harm from storm overflows, transform rivers and seas, and increase water supplies by building new reservoirs and national water transfer schemes – for example to bring water from the north to the south of England using refurbished canals. This will be a critical part of the nation’s response to future drought and climate change.

Average increase of around 60p a week means most customers will again see below-inflation increase

Stuart Colville, Water UK Director of Policy, said:

“With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill. However, we know that any increase is unwelcome, particularly at the moment.

“That is why companies are also releasing an extra £200 million to help those that may be struggling. Anyone with worries should contact their water company or go to supportontap.org for advice, and it’s worth remembering that water companies will never cut anyone off, or make them use a prepayment meter.

“Next year’s bills will support what is already the highest level of investment on record, with a further £70 billion set to be spent over coming years on building new reservoirs and ending overflows into rivers”.

Average yearly water and sewerage bills in England and Wales are forecast to rise by £31 (7.5%) to £448 in the forthcoming year, below inflation (November CPIH inflation, which regulators set as the benchmark, was 9.3%). Water bills remain lower, in real terms, than they were a decade ago.

While there are variations between companies, customers will pay around £1.23 per day on average – an increase of 8p per day on last year’s charges.

Specific bill changes operate according to a formula agreed with Ofwat, the independent regulator. Although companies have absorbed as much cost as possible, this year’s change particularly reflects the inflationary impact of higher energy costs, with water companies using around 2% of the nation’s electricity.

Water companies  “acutely aware of the impact of price rises on lower income and vulnerable customers”

Since the water industry was privatised, more than £190 billion has been invested improving services and enhancing the environment.

Water UK said the companies are “acutely aware of the impact of price rises on lower income and vulnerable customers”, the reason why they have recently increased the level of support they offer by more than £200 million, which will help hundreds of thousands more households.

This builds on the more than 1 million customers that already receive reduced bills – itself the biggest level of support ever offered by the industry – as well as the unprecedented help given to customers during the Covid-19 pandemic, when more than 100,000 payment breaks were approved, Water UK explained.

The trade body added:

“The 7.5% increase in water compares favourably with other utilities. The energy price cap is set to rise by 20% in April, having previously risen by 27% in October (three and a half times the increase in water), while broadband and mobile customers are set to see their bills increase by up to 14% (or almost double the increase in water). Meanwhile, food inflation has just reached 13.8%.”