Biggest increase in water bills for nearly 20 years
Bills will rise by 7.5% in April across England and Wales
Water bills for households in England and Wales are going to rise by the largest amount for nearly 20 years.
In April bills will rise by 7.5% to an average of £448 a year.
Industry body Water UK said the increase would see customers pay around £1.23 per day on average – an increase of 8p per day or an average £31 more than last year’s charges.
Consumer groups warned the rise could prove the tipping point for the one in five customers already struggling to pay.
But Water UK argued that water bills remained lower in real terms than they were a decade ago and said this year’s increase reflected higher energy costs, with water firms using around 2% of the nation’s electricity.
Firms were set to invest a further £70 billion to “eliminate harm” from storm overflows and increase water supplies by building new reservoirs and national water transfer schemes, it said, adding that they were “acutely aware of the impact of price rises on lower income and vulnerable customers” and had recently increased the level of support they offered by more than £200 million.
A 'below-inflation' increase to water bills
Water UK director of policy Stuart Colville 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.”
Some households will see much bigger bills
The Consumer Council for Water (CCW) said regional variations and factors such as whether a customer is metered and how much water they use meant some households could face rises significantly above – or below – the average.
And it said the postcode lottery of social tariff schemes meant many customers who cannot afford their bill “slip through the net”.
CCW chief executive Emma Clancy said: “Water is essential for all of us so no-one should be worried about being able to afford their bill. These increases will bring more uncertainty to struggling households at a time when they can’t be certain they will get the help they need.
“Low-income households need immediate relief and the long-term security of knowing their water bill will be affordable.
“It’s not fair that struggling households face a postcode lottery when it comes to getting help with their bill – that’s why we urgently need a new water affordability scheme that provides consistent support based on people’s needs.”
Jess Cook, water poverty lead at National Energy Action (NEA), said: “Social tariffs are essential for low-income households. Discounted water bills for those struggling to pay can stop the most vulnerable from cutting back or running up debt when they can ill afford to do so.
“But the current postcode lottery means where you live affects what you pay and what support you receive, and the Secretary of State, Therese Coffey, has suggested that fixing this is not one of her top priorities.
“With water bills rising 7.5% on average during this cost-of-living crisis, it’s more vital than ever that access to a social tariff should be made fairer, more consistent, and accessible to everyone who needs it, regardless of where they live.”
Cost of living crisis
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.