Proposed water bill rises: what to know (and what to do about it)

Water bills could rise by an average of £19 a year until 2030, following proposals over how much suppliers can increase costs to consumers. 

Ofwat, the body that regulates the water sector in England and Wales, says the money raised will be invested in measures to reduce pollution, improve river and bathing water quality and make the system better able to deal with climate change.  

The increases will also be used to fund improvements to customer service.  

Unlike household utilities such as gas and electricity, there’s no option to shop around for the cheapest deal - your water supplier depends on where you live. These proposed rises don’t account for inflation either, so the actual cost will likely be higher. 

However, there are still several ways to reduce your monthly bill and mitigate the incoming increases. 

Why are water bills rising? 

Ofwat has approved an £88 billion spending package for water companies to upgrade the services they provide to improve water quality and future-proof their systems. 

However, that figure is £16 billion lower than water companies planned, which means the proposed average annual price rises were cut from £144 over five years to £94. 

Water prices and levels of investment are set every five years and this latest draft decision is subject to feedback from customers and water companies before plans are finalised – likely in December 2024. 

Price rises are proposed for every company except SES Water and Wessex Water, where customers should see costs fall.  

Ofwat has also stated that money raised from rising bills will be used for future projects, not work that has already been funded. 

Water companies have pledged to meet eight new performance targets including improving biodiversity and reducing spills from storm overflows – and, if they fail, they’ll face an automatic penalty. 

Projects planned include the formation of new reservoirs, measures to reduce the number of spills from storm overflows by 44% and improving river water quality with an investment of £6 billion in more than 1500 wastewater treatment works.  

How can you save on water bills? 

Many over 50s could save on water bills by requesting a water meter if they aren’t using one already. 

Currently around 40% of homes in England don’t have a water meter fitted; instead their water bills are based on the ‘rateable value’ of their house.  

This means their water bill is determined by the size, condition and location of the house, without any consideration to the number of people living in it. 

Converting to a water meter often makes sense for older people without kids at home, who are still living in a relatively large property – otherwise they’re paying for the amount of water used by an average-sized family living in a similar building. 

If you aren’t sure whether converting to a water meter would save you money, there’s a calculator on the Consumer Council for Water (CCW)’s website.  

Deputy Head of Policy and Public Affairs at Waterwise Jo Osborn says: “You may find it's worth giving a water meter a go if you do take steps to reduce your use. Check with your water company as you may be able to go back to your old charges if you find it is high.” 

With water heating accounting for around 18% of your home’s energy’s use, using less water will also bring other bills down, especially if you’re taking long showers or using large amounts for washing up. 

However, empty-nesters on a meter will need to be ready when grown-up children boomerang back from university or need to move back home – the increased use will naturally cause bills to rise, so it's important to talk about how they can play their part in saving water. 

“The important thing is to have conversations about your bills with everyone at home, so they start to think about the impact they have. It also helps prepare them for when they run their own household,” says Osborn. 

What help is available if you can’t pay your water bill? 

Whether you’re already struggling to pay your bill or are worried about how a rise in water costs will impact you, help is available. 

Jenny Suggate, Director of Policy, Research and Campaigns at the CCW, says: “Many people will be feeling anxious at the prospect of future bill rises, particularly the two million households across England and Wales who already cannot afford their bills. 

“We want to reassure people that there are many ways to save money or access financial support with your water bill - whether that’s trialling a water meter or seeing if you’re eligible for your water company’s social tariff scheme, which can substantially reduce some customers’ bills.” 

If you live in England and need a lot of water for medical reasons (and have a water meter), the WaterSure scheme can help you if you’re on benefits such as Pension Credit. 

It caps your charges, giving you peace of mind you won’t be faced with a big bill. WaterSure Wales works in a similar way to the English scheme. 

Water companies also have social tariffs, which can help you to bring your bills down if you’re on a low income. However, the help offered varies by supplier, so you should look up details on the CCW website: scroll down and search for your local water company to see what’s on offer. 

It’s also worth signing up for the Priority Services Register (PSR) to let your supplier know if you have any extra communication, access or safety needs.  

This helps your water, gas and electricity supplier and network prioritise you in the event of a power cut or interruption to your water supply.