40 percent Of Water Customers ‘Would Struggle’ To Meet Bill Rises

With water industry regulator Ofwat poised to increase bills from April 2025 by an average of 21 per cent (before inflation) over the next five years, customers are now bracing themselves for the hike, with some 40 per cent admitting that they would find these proposed changes difficult to afford.

This is according to new research from the Consumer Council for Water (CCW), revealing that two out of five households across England and Wales would struggle to meet the additional payments.

The study surveyed 9,500 households, covering the catchment areas of each water company, asking people how easy or difficult it would be for them to cover the proposed bill hikes, as well as how acceptable they found the five-year investment plans for their region.

Although they were all broadly supportive of how the money would be used to address concerns such as pollution reduction and water leakage rates, the fact remains that millions of households would find the price tag too heavy for them to bear.

The survey also reviewed how people were managing financially at the moment, finding that many are now walking a tightrope, with 42 per cent saying they had struggled to pay at least one bill in the last 12 years.

Some 54 per cent admitted that they would have to cut back on non-essentials to pay for the proposed water bills, while 43 per cent said they’d use less water and 38 per cent plan to cut back on essentials such as food shopping.

Commenting on the findings, Mike Keil – CCW chief executive – said: “These bill increases would put an intolerable strain on the finances of millions of households and only a single social tariff can provide the safety net that is needed to ensure water is affordable for everyone.

“People support the need for investment but there is a strong undercurrent of mistrust over whether water companies can deliver on their commitments. Customers need to see evidence their money is being well spent, otherwise fractured trust in the water sector will never be repaired.”

Ofwat’s plan is to deliver a spending package of £88 billion by water companies, initially funded through shareholders and/or borrowing but with the costs later recovered through these bill hikes over the course of the next five years and beyond.

It will go towards reducing pollution, ensuring greater resilience to climate change impacts, and improving both customer service and river and bathing water quality, more than trebling the level of investment seen between 2020 and 2025.

Chief executive David Black said: “Customers want to see radical change in the way water companies care for the environment. Our draft decisions on company plans approve a tripling of investment to make sustained improvement to customer service and the environment at a fair price for customers.

“These proposals aim to deliver a 44 per cent reduction in spills from storm overflows compared to levels in 2021. We expect all companies to embrace innovation and go further and faster to reduce spills wherever possible.

“Today’s announcement also increases the resilience of our water supplies to the impact of climate change and will reduce how much water is taken from rivers by enabling a range of long-term water supply projects, which includes plans for nine reservoirs.”

How can businesses reduce their water bills?

There are various ways in which businesses can go about reducing their water bills, helping to shore up supplies for future generations while also saving themselves money and improving their blue credentials as a result.

Prioritising water leak reduction is an excellent first step, as you may be wasting water without even knowing about it. The majority of leaks are either so small that you scarcely notice them until you’re hit with a big bill, or take place far below ground with no noticeable sign that there’s a problem.

Having a water audit of your site will reveal any spikes in usage, which can indicate that there’s a leak somewhere on your premises, allowing you to take action and implement the appropriate water-saving solutions as time goes on.

Switching water supplier can also help you cut back on your bills, as well as enjoying other benefits such as bill consolidation (which can help streamline your operations), cost savings and better customer service.

The process of switching can be a little overwhelming, however, with so many new retailers entering the market. If you’d like any help or advice relating to finding a new business water supplier, get in touch with us today to see what we can do.