Severn Trent Water faces backlash over 7.1% bill rise

BBC Gail BrownlowBBC
Care worker Gail Brownlow said it would be a struggle for people to find the extra money

A water company is facing criticism from MPs and members of the public for increasing its average bills by 7.1%.

Severn Trent, which supplies water to eight million people in the Midlands, said it had schemes available to support customers who needed it.

But Conservative and Labour MPs from the region said the rise was one of the biggest in the country.

The government said bill rises were carefully scrutinised by a regulator.

Severn Trent said the rise would mean average household bills would increase by £26 per year.

"That's a big difference," Peter Lee, from East Leake, in Nottinghamshire, told the BBC.

"We'll have to start cutting down on other things. Perhaps we won't go on holiday in future. We've got one booked in August but, after that, I really don't know.

"What we can do about it... I don't think the government can do a great deal, other than giving rebates and things like that, but who pays for that - us?"

Peter Lee
Peter Lee said he did not know what action the government could take

Steve Willey, from Sherwood in Nottinghamshire, said the rise was "not fair".

"The cost of living keeps going up all the time at the moment. It seems bills are going up and National Insurance keeps going up," he said.

"People are going to struggle to heat their homes at the moment. We'll just have to get by, I suppose, but some people are really going to struggle.

"I'm very annoyed about it - very angry."

Care worker Gail Brownlow, also from Sherwood, said: "I'm not very happy, obviously.

"Even though our wages have gone up a bit, we still have to find the extra money to pay for the extra water, gas, electric.

"It will be a struggle because we have to find that extra money. National Insurance is going up as well. It's very hard."

Steve Willey
Steve Willey said he felt angry about the rise

Lee Anderson, Conservative MP for Ashfield, said the rise was among the highest in the country.

"I understand the argument they have extra costs, but a 7% increase when, in other areas of the country it's about 3-4% - they really need to look at it again," he said.

He called on the environment secretary to intervene over the rise.

"They make a hell a lot of money, the water companies," he added.

"For some of the poor people in Ashfield that are on a minimum wage, living wage or living on benefits, this is really going to hurt them in the pocket."

Nadia Whittome, Labour MP for Nottingham East, said: "This is yet another blow for people who have already seen their universal credit cut, food prices and energy prices rise, the National Insurance hike is due to come in and wages just aren't keeping up."

She called on private companies to be brought back into public ownership.

"Water has a monopoly which means people don't have any choice about who their water provider is. Companies like Seven Trent can charge what they want and privatisation is actually costing us more money."

"We know this is still a challenging time for many of our customers, especially for those whose circumstances have changed during the pandemic," a spokesperson for Severn Trent said.

"That's why we have a number of schemes available, to support customers who need a bit of help with their bill.

"Whether it's financial help, a more personalised service, or just a bit of extra support, we've got lots of options available to help those who may need it."

Minister for Nature Recovery and Domestic Environment Rebecca Pow said: "Severn Trent's increase in their water charges relates to several factors, including an increase in the rate of inflation, new investment to support green economic recovery and revenue adjustments, which corrects previous cost and revenue estimates.

"These costs and adjustments are in line with the revenue controls set by the regulator, Ofwat, for all water companies.

"Ofwat carefully scrutinises water company investments to ensure value for customer money."

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