Water bills in England and Wales are set to rise by an average of £10 a month from April 2025, marking a 26% increase on the previous year.
Despite this, water companies insist the rise is necessary to fund record investment and are promising £4.1bn in support for struggling households.
Customers will now pay an average of £1.65 a day for water and sewerage services, up from £1.32 in 2024-25.
Water UK says the rise follows years of bills falling in real terms, stating that even after this increase, bills are only around 5% higher than in 2010 when adjusted for inflation.
Water UK Chief Executive David Henderson acknowledged the impact of the price hike: “We understand increasing bills is never welcome and while we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult.”
In return, water companies will invest £20bn in 2025-26, the highest annual spend in history, as part of a £104bn five-year programme.
The funding will go towards nine new reservoirs, upgrades to wastewater treatment works, and improvements to 15,000km of rivers.
Mr Henderson added: “Water companies will invest a record £20 billion in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”
For households struggling with costs, £4.1bn in affordability support will be available over the next five years.
This includes social tariffs, WaterSure discounts, and other measures such as payment breaks and debt forgiveness.
With bills rising sharply, the regulator Ofwat has assured customers that companies will only be allowed to charge for “genuinely new and needed” infrastructure.
If targets aren’t met, bills will be reduced automatically.
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