Water bills to rise by 7.5%

This is 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.

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.

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%.

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”.