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Where water bills will rise the most in 2025

Water bills will rise by an average of £123 this year, the biggest hit to household budgets since the privatisation of the water industry 36 years ago.

The rise, confirmed by industry body Water UK, will take the average water and wastewater bill from £480 to £603 for the next year. This equates to an increase of around £10 a month, from £40 to £50.

But for millions of households across England and Wales, the rise is even higher – almost 50 per cent for some customers.

Here, The i Paper looks at how much water bills will go up in different parts of th the country, as households continue to struggle with the cost of living.

Will my water bills increase?

Thames Water – the largest water company in England – are raising bills by 31 per cent from 1 April. This will place the average bill at £639, rising by £151.

The beleaguered water company serves around 16 million customers in Greater London and southern England. The utility is currently facing £16bn of debt and needs £3.3bn over the next five years to keep running, with money due to run out by late March.

A map of England and Wales shows how much water bills will increase by on 1 April

However millions of households face even steeper rises. Southern Water customers will see a 47 per cent increase, with a yearly bill for an average household standing at £703 – up from £478.

Hafren Dyfrdwy and South West Water bills will each rise by 32 per cent on 1 April while Yorkshire Water will rise to 29 per cent.

Bournemouth Water customers will also see a 32 per cent increase to their bills.

Bristol Water customers face the lowest rise at 4 per cent. The firm only supplies drinking water to its 1.2m customers and no wastewater service.

The increases are higher than those announced by Ofwat in its new five-year price limits for firms just before Christmas as they include inflation.

Following the announcement, utility companies said they would support more than three million households with their bills as part of a £4.1 billion package over the next five years.

Water UK advised customers to contact their water company directly to see what help was available if they were concerned about the hikes.

Why are my water bills going up?

Every five years, England and Wales’ regional water suppliers submit plans to regulator Ofwat for the upcoming half decade.

The plans include how far they can increase bills over the period, plus how much they will spend on upgrading drains, sewers and reservoirs.

Ofwat then gives a draft ruling in July, kicking off about six months of final negotiations over how much firms can charge.

Ofwat published its final decision on bill increases in December, with Water UK announcing the increases by company, including inflation, that will take effect from 1 April.

Prior to the announcement, Ofwat said in December that it had “robustly” examined firms’ requests to raise bills. The regulator, however, gave firms higher bill increases than they asked for in their original business plans.

Anglian Water, for example, initially asked for average annual bills to rise to £573 by 2030, a 17 per cent increase. Ofwat reduced that to £557 in a draft ruling in July.

Water firms then had a chance to put forward updated requests for bill increases. Anglian hiked its request to £649 in annual bills and Ofwat allowed the firm to charge customers £631 on average per year.

Similar processes happened at Northumbrian Water, Severn Trent, South West Water, United Utilities and Yorkshire Water.

Water UK stressed the increase was only around 5 per cent higher than bills in 2010 in real terms – excluding inflation.

Water firms face huge costs on improving drains, reservoirs and sewers, meaning they need to spend billions on upgrades. But because they are also privatised, firms also want to turn a profit for shareholders.

United Utilities and South West Water’s parent company Pennon have already said they will raise dividend payouts to shareholders this year so that they increase in line with inflation.

Many firms also face huge debt piles. The 10 biggest water companies have about £60 billion of combined debt.

What are the improvements promised by water companies?

Water UK said firms would invest around £20 billion from April 2025 to March 2026.

This is the highest level of expenditure in a single year, and the first in a five-year programme of investment worth £104 billion up to 2030.

The investment would help to build nine new reservoirs and nine new water transfer schemes, upgrade the capacity of 1,700 wastewater treatment works to reduce pollution and improve and protect more than 15,000 kilometres of rivers across England and Wales.

Public information signs from Thames Water Ltd. on protective barriers surrounding water supply works in London, UK, on Monday, July 8, 2024. Thames Water is waiting on a key July 11 ruling from water regulator Ofwat on its next business plan, a decision which will set price controls for water utilities. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
Thames Water faces around £16bn in debt and needs £3.3bn over the next five years to keep running (Photo: Chris Ratcliffe/Bloomberg)

Water UK chief executive David Henderson said: “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.

“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.”

What has been the response to the bill increases?

Charles Watson, from River Action, said Ofwat had “failed” and “run up the white flag” by announcing rises in household water bills.

“The shareholders in these companies are just laughing all the way to the bank,” he said.

The Consumer Council for Water (CCW) called for stronger and fairer support to protect struggling households.

CCW said customers continued to face a postcode lottery of social tariff schemes, which meant the level of support and who was eligible varied considerably across England and Wales.

“These rises are the largest we’ve seen since privatisation and will heap considerable pressure on millions of customers who are already having to make difficult choices,” CCW chief executive Mike Keil said.

Demonstrators hold placards as they protest against Thames Water, ahead of the hearing on a rescue loan for Thames Water, in London, Britain, December 17, 2024. REUTERS/Mina
Demonstrators hold placards as they protest against Thames Water in London in December (Photo: Mina Kim/Reuters)

“Customers want to see investment in improving services and cleaning up our rivers but that can’t come at an unbearable cost to struggling households.

“Around 2.5 million households are already in debt to their water company and there is a danger that number will grow unless some companies show more ambition around financial support.”

James Wallace, the chief executive of campaign group River Action, said: “We’re being told to celebrate the ‘record investment’ of water companies, but in reality, it is the public that will pay the price for their decades of neglect. Instead of fixing crumbling infrastructure, water companies have saddled themselves with billions in junk debt, leaving us with sewage-choked rivers, and paying extortionate interest rates through bill hikes.

“Communities and customers won’t be fooled by this web of lies. It’s time for broken utilities like Thames Water to be put into Special Administration and refinanced to operate for public benefit not investor return.

“Meanwhile, the Water Commission must end the failed privatisation experiment and reform the broken regulators to ensure a sustainable and resilient water and sewage system for future generations. Rivers do not need economic growth, they enable it.”



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