Water Bills to rise by more than 30% over the next five years

UK households are facing a substantial increase in their water bills, according to a government-commissioned review which made 88 recommendations to radically reform the water sector, including the abolition of the current regulator, Ofwat.

Water bills to rise by 30% over five years under proposed water industry reforms

Sir Jon Cunliffe, who led the Independent Water Commission review published today, stated that UK water bills will likely have to increase by 30% (on top of inflation) over the next five years in order to fund the massive investment needed across the failing water sector.

This comes after decades of underinvestment that has left much of the UK’s water infrastructure ageing and prone to issues like leakage and burst pipes. Water companies will also require the investment to meet stricter environmental standards to significantly reduce sewage pollution in rivers and coastal waters as well as to improve overall water quality. In addition, water companies must adapt to the impact of climate change, such as increased droughts and flooding, as well as catering for a growing population.

The projected increase in water bills comes on top of the recent hike announced in the spring. From the 1st April 2025 the average annual water bill in the UK rose by 26% or £123. This brought the average UK water bill to around £603 per year.

Independent Water Commission's recommendations

Among the 88 recommendations made by the report was the recommendation to scrap the Water Services Regulation Authority, Ofwat. The report proposes replacing it with a new, single powerful regulator, merging functions currently held by Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate. Environment Secretary Steve Reed has publicly backed this proposal, stating that "Ofwat is clearly failing" and pledging a "water revolution" for the sector.

Other recommendations from the report include:

• making water meters compulsory
• improved customer protection by upgrading the existing Consumer Council for Water (CCW), which currently can take up unresolved customer complaints, to an ombudsman, providing stronger customer protection and a more direct route for complaint resolution.
• strategic control over water companies: Authorities would gain the ability to prevent changes in ownership of water companies when such changes don't align with the long-term benefit of the company and its customers. "Public benefit" provisions will be added to water company operating licences.
• a new "national social tariff" to provide consistent, targeted assistance for low-income households, addressing the current postcode lottery of varying company-specific schemes.

When will the reforms take effect?

The proposed changes signify a major turning point for the UK water sector, aiming to address long-standing issues of infrastructure, environmental performance, and consumer confidence, albeit with a direct financial impact on households through increased water bills. The government plans to fast-track key recommendations from the report, with a new Water Reform Bill expected to follow consultations this autumn.

How have the recommendations been received?

The Independent Water Commission recommendations have been generally well received. The CCW welcomed the call for a national social tariff and a mandatory ombudsman scheme for stronger consumer protection.

Environmental groups, such as the Wildlife and Countryside Link cautiously welcomed proposals for stronger environmental regulation and regional planning, but stressed the need for adequate funding and government direction to counter a perceived "culture of rule-breaking."

Water UK, representing the industry, largely welcomed the commission's findings, stating that the proposed reforms are "long overdue" and crucial for establishing secure water supplies and ending sewage spills.

What to do if you are struggling to pay your water bill

• Ways to save money on your water bill: Check out our guide on how to save money on your water bill.
• Direct assistance for water bills: If you're finding it hard to keep up with your water payments, Water UK suggests reaching out to your water provider directly, as they might be able to offer support like payment holidays or even debt write-offs.
• Support for lower incomes: For customers on lower income, there's extra help available through the WaterSure scheme or potentially via social tariffs which entitle you to a cheaper rate from your water company