Why are water bills rising and what can I do?

On Thursday, the regulator Ofwat will publish its final decision about how much water companies can increase prices in the next five years.

It previously suggested that the average household bill in England and Wales should rise by 21% over the period.

However water firms insisted that won't be enough to address problems including sewage leaks.

Most people in England and Wales get their water from one of 17 companies and have their waste water taken away by one of 11 firms.

Households cannot choose a supplier - it is down to where you live.

Every five years Ofwat sets out the levels of service which customers can expect and how much it will cost to keep firms running efficiently.

While it publishes limits, individual water companies decide how much to charge customers.

In July, Ofwat proposed that bills should increase by an average of £19 per year between April 2025 and 2030. That amounts to £94 over the period, a rise of 21%.

The suggested increases vary by supplier, with Thames Water customers facing an increase of £99 or 23%, Anglian customers looking at £66 or 13%, and Southern Water customers facing £183, an increase of 44%.

• Water UK: Find your supplier

However, the water industry wants bills to rise by an average of 33% by 2030.

It warned that the increase proposed by Ofwat would not be enough to tackle the range of problems which the industry is facing.

The final figure is now due, following a consultation, although water companies can still appeal to the Competition and Markets Authority (CMA).

Households in England and Wales are typically billed for water in one of two ways:

• Unmetered customers pay a set amount for their water and sewage services, regardless of how much water they use. This is usually based on the rateable value of their home - an approximate annual rental value of a property
• Metered customers only pay for what they use. They have readings from their water meters collected by the water company

All households also pay for sewerage services, either as part of their water bill or separately if their water company doesn’t deliver wastewater services.

• Ofwat: Your water bill

Water firms insist they need extra money to replace ageing, leaking pipes and to reduce sewage discharges into rivers and seas.

However they are also facing increasing scrutiny and public anger over their environmental and financial performance, as well as executive bonuses and pay.

Move to a social tariff: Every water company offers a scheme which can help reduce your bills if you’re on a low income but the each firm's rules are different.

Get a water meter: Meters can reduce bills for some. Every household can apply to have one installed. If a meter is not suitable, the water company must offer something called an “assessed charge” which may also save you money.

Sewage service rebates: Households may be able to get a rebate for certain sewage services if they can prove they do not use them.

Use less water: Many water companies offer customers free water-saving devices. Look out for unexplained increases in your bills - it may mean you have a leak.

In November 2024, the Consumer Council for Water (CCW) surveyed 9,500 households across 19 water company areas, and found:

• 18% were already struggling to pay their bills
• 40% would find it difficult to pay the proposed higher amounts

CCW chief executive Mike Keil warned the suggested price increases would put an "intolerable strain" on the finances of millions.

Water UK, which represents the sector, said companies wanted to provide more support to customers struggling with bill rises, but needed greater investment to allow them to improve the water and sewage infrastructure.

Record numbers sought help with their bills in 2023-2024, according to figures seen by the BBC.

At the moment the amount of financial support available and the qualifying criteria vary by company.

The CCW wants all firms to have a single scheme so that everyone gets the same level of help wherever they live.

• Ofwat: Customer assistance
• Consumer Council for Water: Help with bills

As part of its price review, Ofwat sets performance targets to encourage water companies to meet their commitments to customers and the environment.

They are expected to reduce leakage, pollution incidents and sewer flooding.

If a company beats its targets it may get a financial reward. If it does not meet them, it may face a penalty.

The companies reflect these costs in annual adjustments to customer bills.

In 2024-25 water companies will have to repay £114m.

A small number of Scottish households have water meters. However, most pay for water and sewerage services as part of their council tax, with charges linked to their council tax band.

Average bills will rise by £35.95 in 2024/25, according to Scottish Water.

Someone living in a council tax band C property will pay on average £485.68 for water and sewerage services.

Households in Northern Ireland are not billed for water.