Water bills set to rise by up to 12.9% a YEAR adding extra pressure to households

Water bills will rise by up to 12.9 per cent for some Britons this year, new figures show, adding extra pressure to hard-up households during a cost of living crisis.

The bill hike will come as a shock to many, who are used to water costs rising at a far slower rate. Last year the average water bill rose by just 1.7 per cent, according to trade body Water UK.

Most water firms announce their yearly bill increases from February 2, but a few have released their new prices early – and the figures suggest big rises are coming.

Anglian Water will increase rates by 11.7 and 12.9 per cent for the 2.6 million homes in its catchment area from April 1.

Households face higher-than-average increases for the price of water this year

That means a two-person household currently paying £416.66 a year for water will pay an extra £49.38 this year, taking the total to £466.04.

A spokesperson for Anglian Water said: ‘The change in how much customers will pay on their bills this year is being driven by factors including rising inflation rates and because we’re investing more in the things that are important to our customers and our region, as we plan for the future.’

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Meanwhile the average household supplied by South East Water is set to pay an extra 11.95 per cent for water, or £32.80 extra per year.

A spokesperson for South East Water said the company would finalise its bill rises before midnight on February 1. 

Why are water bills rising so fast? 

  • Bills for water change on April 1 every year under rules from regulator Ofwat. 
  • These rules say water firms can increase their prices by inflation of the previous November, plus a percentage. 
  • The CPIH measure of inflation was abnormally high last November, at 9.4 per cent. 
  • That compares to 4.6 per cent in November 2021 and 0.6 per cent in the same month of 2020. 

However, the increases are lower in other areas. For example, customers of Bristol Water will see bill hikes of 5.5 per cent a year on average.

What an individual household pays for water can also vary depending on if they are metered or unmetered and how much water they use.

Households in some regions will also see lower water bill rises due to water firms missing targets on water quality.

Last November the regulator Ofwat ordered several firms to return cash to customers for poor ‘water treatment works compliance, pollution incidents and internal sewer flooding’.

Thames Water was ordered to repay £51 million in the form of lower bills, for example, and Southern Water £28.3 million.

What happens if I can’t afford my water bills?

There are a number of schemes available to help people struggling to pay for water.

Some are run by the water companies themselves, while the WaterSure scheme is overseen by Ofwat. 

One of the biggest assistance programmes is run by Anglian Water, which has set aside £135 million to help people pay their bills.

A spokesperson for Anglian Water said: ‘We know that it continues to be a challenging time for many of our customers. That’s why we are going further than any of our peers to help those customers struggling with the cost of living, having launched our largest ever package of support of £135million in November.’ 

Help is available: Customers finding it difficult to pay their water bill can ask their water company for support. They may be able to get a discount or set up a payment plan

Help is available: Customers finding it difficult to pay their water bill can ask their water company for support. They may be able to get a discount or set up a payment plan

This week Affinity Water announced it would make payments of £50 for up to 30,000 vulnerable customers in its catchment area, which includes parts of London, the south east and east of England.

Northumbrian Water said customers struggling to pay water bills can set up a payment plan, apply for a discount if they are on low incomes or ask for a payment holiday.

Many water firms also have social tariffs, which cap water bills for vulnerable people or those on lower incomes.

South East Water, for example, has a social tariff available to households with income of up to £17,005 a year, which it may increase to £18,005 this year.

Meanwhile, families getting benefits such as Universal Credit can get lower water bills through the WaterSure scheme.

cost of living

WaterSure means eligible customers will not pay more than the average water bill for the area even if they are using above-average amounts of water.

To apply, households must have a water meter and school-age children or else need to use more water for medical purposes.

Millions of families claiming benefits like Universal Credit can lower their household costs through a scheme that caps water bills.

WaterSure allows customers to be protected from paying surging rates even if using more than the average amount of water.

To apply, a household must be on a water meter, or waiting for one to be fitted. They must also be on certain benefits, such as Pension Credit and Universal Credit, or have what Ofwat calls a ‘high essential use of water’.

Customers can apply for WaterSure through their water firm.

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