Water bills are set to increase by 20% with the average water bill going up by £86 before inflation in England and Wales from April 2025. Over the next five years, the average water bill will go up by around £157 - or 36% - with the biggest price increase expected next year.
Ofwat, the water sector regulator for England and Wales, announced the increase this Thursday (December 19). The figures are higher than previously expected. In July, Ofwat proposed an increase of around £19 per year over 5 years which would have amounted to £94 rather than £157 over the same period.
Why are water bills increasing?
The increase in bills is going to fund a £104bn upgrade designed to accelerate the delivery of cleaner rivers and seas while also securing long-term drinking water supplies. Nearly 90% of the investment package will be allocated to meet new requirements introduced by various environmental bodies such as the Environment Agency. Around £12bn will be allocated to 30 major infrastructure projects designed to build resilience to drought.
Ofwat also announced a clawback mechanism where companies which do not spend the allocated money on investments return the money to customers through lower bills.
David Black, Ofwat Chief Executive, said: "Today marks a significant moment. It provides water companies with an opportunity to regain customers’ trust by using this £104bn upgrade to turn around their environmental record and improve services to customers.
“Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills. Alongside the step up in investment, we need to see a transformation in companies’ culture and performance. We will monitor and hold companies to account on their investment programmes and improvements.
"We recognise it is a difficult time for many, and we are acutely aware of the impact that bill increases will have for some customers. That is why it is vital that companies are stepping up their support for customers who struggle to pay."
How much will my water bill go up?
Not all water companies will increase their bills by the same amount. In the table below, we outline how much specific companies are charging now and how much they'll likely charge from 2029 to 2030 on average.
The figures are provided by Ofwat and are before inflation. This means that the actual figure will likely be higher depending on inflation figures over the coming years.
| Company | Type of company | Average water bill in 2024-2025 | Average water bill in 2029-2030 | % increase over 5 years |
| Southern Water | Water and Wastewater | £420 | £642 | 53% |
| Severn Trent Water | Water and Wastewater | £398 | £583 | 47% |
| Dŵr Cymru | Water and Wastewater | £455 | £645 | 42% |
| Hafren Dyfrdwy | Water and Wastewater | £392 | £645 | 42% |
| Yorkshire Water | Water and Wastewater | £430 | £607 | 41% |
| Portsmouth Water | Water Only | £111 | £152 | 37% |
| Thames Water | Water and Wastewater | £436 | £588 | 35% |
| United Utilities | Water and Wastewater | £442 | £585 | 32% |
| Anglian Water | Water and Wastewater | £491 | £631 | 29% |
| Affinity Water | Water Only | £192 | £241 | 26% |
| South East Water | Water Only | £232 | £287 | 24% |
| South West Water | Water and Wastewater | £497 | £610 | 23% |
| South Staffs Water | Water Only | £161 | £195 | 21% |
| Wessex Water | Water and Wastewater | £508 | £614 | 21% |
| SES Water | Water Only | £221 | £215 | -3% |
The figures determined by the regulator are lower than what the water companies requested earlier this year, but higher than the July projections. For example, Southern Water requested an 83% increase over 5 years where the average bill would have reached £768 before inflation by 2030, but the figures released by the regulator indicate that bills will go up by 53% instead.
Bills for water and wastewater companies specifically are due to go up by 36%, while water-only companies will see an increase of around 22% on average.
Next year's water bills are due to jump by 20% before inflation, which could stretch household finances across the board. If you think you'll struggle with your bills in 2025, check out our article where we explain how to save money on your water bills.
