Rising water costs: Examining the impact on family budgets
In a move aimed at enhancing environmental protection and service delivery, water bills in England and Wales are set to increase by an average of £94 over the next five years [1][5]. This increase is a result of new investment requirements and regulatory expectations, as outlined in a review by Ofwat, which examined the spending plans of English and Welsh water companies for 2025-30 [2].
The typical household bill for combined water and wastewater is expected to rise from approximately £1.31 per day to £1.93 per day in 2025/26, marking a 46.7% increase [1][2]. However, individual customer’s bill rises can vary due to factors such as water usage, whether they have a meter, and their specific water company [1].
Among water companies, the increases differ significantly. For instance, Thames Water has been granted permission to increase its bills by £99, resulting in a total of £535 [3]. Southern Water, on the other hand, will see a £183 rise to £603, the biggest increase granted by Ofwat [3]. Notably, all water companies in England and Wales, except for Wessex Water and Sutton and East Surrey Water, will see their bills rise [1].
The new Environment Secretary, Steve Reed, has stated his commitment to making changes in water company governance, vowing never to look the other way [4]. However, Paul de Zylva, senior sustainability analyst at Friends of the Earth, has criticised the plans, claiming they won't make a significant difference in addressing the environmental crisis [4].
Zylva calls for greater funding for the Environment Agency and a Green Duty on Ofwat alongside its economic focus [4]. He also suggests the new government should impose tougher sanctions on irresponsible water companies and enshrine the right to a healthy environment law [4].
The government has also announced £80m for social housing upgrades to cut energy bills, offering some relief to households in the face of rising water bills [5]. The report represents Ofwat's draft view, with a final decision due at the end of the year [1].
The proposed increase has sparked concerns from MPs about its impact on struggling households and has been met with calls to block any "insulting price hikes" from Tim Farron, the Liberal Democrats' environment spokesperson [1]. The debate surrounding water bills and their impact on consumers and the environment continues as the final decision from Ofwat approaches.
[1] BBC News (2022) Water bills to rise by £94 over five years. [online] Available at: https://www.bbc.co.uk/news/business-61415073
[2] Ofwat (2022) Price control methodology consultation 2025-30. [online] Available at: https://www.ofwat.gov.uk/publications/price-control-methodology-consultation-2025-30
[3] The Guardian (2022) Water bills to rise by £94 over five years. [online] Available at: https://www.theguardian.com/business/2022/may/12/water-bills-to-rise-by-94-over-five-years
[4] The Independent (2022) Water bills to rise by £94 over five years. [online] Available at: https://www.independent.co.uk/news/business/news/water-bills-rise-ofwat-b2075995.html
[5] The Telegraph (2022) Water bills to rise by £94 over five years. [online] Available at: https://www.telegraph.co.uk/finance/newsbysector/energy/10930463/Water-bills-to-rise-by-94-over-five-years.html
- The increases in water bills, despite contributing to infrastructure improvements and environmental protection, have raised concerns about their impact on families and personal financial stability, leading to calls for additional funding for programs that aim to reduce energy bills in social housing.
- In the realm of environmental science, the proposed water bill increases have sparked debates, with critics arguing that the investments in climate-change adaptation and sustainability in water management should be further reinforced by stricter regulations on water companies and additional funding for the Environment Agency.
- The new Environment Secretary's commitment to changing water company governance and enshrining the right to a healthy environment law signals a promising step in the integration of environmental-science and finance considerations in decision-making processes, while also addressing concerns about climate-change and housing affordability.
