Understanding bill increases
Your water bill is increasing and we understand this may be worrying. We're here to help explain why your bill is going up, where the money will be spent and how we can support you if you're concerned about paying your bill.
Why have water bills increased?
We know a price increase is never welcome, especially alongside other cost of living pressures. However, to deliver the things you’ve told us matter most, such as minimising flooding, reducing storm overflows, fixing more leaks, protecting the environment and improving our service, we need to increase bills.
We’ve worked hard to keep bills as low as possible for many years, but more investment is needed to help keep our rivers healthy, improve the quality of our bathing waters and provide the service our customers deserve.
Why are bills going up now?
Over the last year we've taken time to speak to many of our customers customers about the improvements they want to see, and the huge investment needed to deliver these. A lot of the funding will come from our shareholders, who have invested over £1.6 billion, almost £1,500 per customer, since 2021 (with no external dividends paid since 2017). However, to fully deliver on our commitments we also need to increase bills. There are several other factors which are contributing to increased bills.
Environmental pressure
We’re seeing increased pressure on water sources, such as rivers, as more people and businesses rely on them. We can only take so much water from the environment before we start to have a negative impact. We therefore need to find and develop new sources of water. This will increase the cost of treating and supplying water, and we’ll need to invest in recycling wastewater, transferring water from other or even desalinating sea water.
A growing population
A growing population means more built-up spaces and less water being soaked up by the land. This causes more flooding and storm overflow releases. We need to change the way we deal with this excess water to stop it entering sewers, investing in new ways to capture it, soak it up and store it.
Climate change
Changes to our climate mean we’re experiencing heavier rainfall, which can overwhelm our networks, causing increased flooding and storm overflow releases. We’re already adapting these systems, although it will take time. Our Clean Rivers and Seas Plan is delivering improvements in your area and explains how we plan to deliver more.
Increased costs
Costs for the services we use to supply your water and take your wastewater away – like chemicals and energy – have increased.
Whilst inflation has fluctuated significantly in the last 10 years, we have worked hard to keep our bills as low and will continue to do all we can to keep them as affordable as possible.
An end to bill reductions
Bills were reduced (by around 6% per year) because of penalties from our regulators, resulting in rebates on your bills, but this has now ended. Our shareholders paid for this, not customers. They have invested nearly £1.6 billion, almost £1,500 per customer, to improve our services, while protecting and enhancing the local environment. At the same time, we haven’t paid our shareholders anything since 2017.
Funding Improvements
The UK water industry is facing several challenges. If we're to successfully navigate and overcome these challenges, we'll need extensive and careful planning along with huge investments. The business plans we've published lay out these challenges and what we plan to do in response. This includes taking both immediate and long-term action to improve our performance, protect our environment and continue to provide high-quality drinking water and wastewater services.
How is my money being spent?
We’re investing in the areas that matter most to our customers, including:
- Minimising flooding by upgrading sites and increasing the number of natural drainage solutions.
- Finding and fixing more leaks by replacing 300km of pipework and installing more sensors.
- Reducing storm overflows at almost 300 locations along our coastline, investing £1.1 billion in our bathing waters.
- Making your supply more resilient by building more reservoirs and water recycling plants.
- Delivering excellent customer service providing increased support for customers who need it most.
- Limiting our impact on rivers by reducing the amount of water we take from them, protecting wildlife and habitats.
Your questions answered
Our regulator, Ofwat, sets a limit on what we should charge our customers. Our charges are reviewed and approved by them each year.
We have worked hard to keep our bills low for many years and will continue to do all we can to keep them as affordable as possible. Since 2014, the average water and wastewater bill has gone from £437 to £439, that is an increase of just 0.5%.
The increase will vary and depends on things like your usage. From April 2025, the typical household bill for combined water and wastewater will rise by 46.7%, from £1.31 per day to £1.93 per day.
If you have a water meter, you’ll see the new charges on your first bill after 1 April 2025. If you pay unmeasured charges (not on a meter), you’ll see the new rates on your annual bill for 2025/26.
If you would like to review your account, check your payment history, and see your usage please log into your account or register.
Direct Debit payments, for customers who have a water meter, are based on the predicted cost of the water you will use, plus any outstanding balance. The total cost is divided by the number of months until your next bill to help spread the cost evenly.
With water bills increasing, we have recalculated some Direct Debit plans to help spread the cost, ahead of the new charges coming into effect. This helps to reduce the size of the monthly increase. If you are billed between July and October, your payments were adjusted from March to make the increase smaller.
You can check your water use against the average here as well as find helpful information on how to reduce how much water you use.
Understand how we calculate your bill.
We offer a variety of support schemes, including discounts of at least 45%, capped rates, and help with clearing debt. From 2025, an extra £235 million support package is available for customers who need it most. Check if you’re eligible and apply.
We’ve already made a number of improvements including:
- Enhancing the quality of water, we return to the environment.
- Reducing the number of storm overflows.
- Increasing reliability at our sites across the region.
- Protecting communities from groundwater flooding, and the environment from pollution.
- Trialling natural drainage solutions.
- Extending our sewer network, enabling new development.
- Completing river catchment surveys to see where we can restore, enhance and protect our water sources.
Information has been shared via our website, social media channels, customer emails and with the bill itself. We recognise that this didn’t go far enough and want to reassure you that we’re taking your feedback onboard to improve how we share information and improve our communications going forwards.
No external dividends have been paid since 2017. Our shareholders have invested around £1.6 billion, almost £1,500 per customer, to improve our services, while protecting and enhancing the local environment. In addition, they are also investing millions more over the next 5 years.
Paying by Direct Debit is the best way to stay on top of your bill and avoid falling into debt. Set up a Direct Debit or log into your online account.
Please be aware, if you cancel your Direct Debit, then the full bill will be payable when it is issued. If you then choose to set up a Direct Debit, it is likely to be higher to cover the bill that’s already been issued. If payment isn’t made or a payment plan isn’t set up, then you will enter the debt recovery process. This could involve additional fees if your account is sent to a Debt Collection Agency, and a Default could be registered on your credit file.
We really don't want this to happen so it's important your regular payments and/or bill is paid on time.
Your bill is based on several different things. Standing charges, the amount of water you’ve used (if you’ve got a meter), the amount of wastewater we’ve taken away (if you’ve got a meter), any outstanding balance and other tariffs that you may be using. Everyone’s circumstances are different as everyone uses water differently. You can find lots of information and tips on how to reduce your water use. If you think your bill is wrong, you can review your account, check your payment history, and see your usage via your online account.
Getting a water meter fitted can help you understand how much water you’re using and potentially save you money on your bill. You can see if you’re eligible to have a meter fitted by filling out this simple form: Apply for a water meter - it should only take a few minutes, and you can expect a reply within 48-hours.
If your drinking water is supplied by a different water company, you will need to contact them directly about getting a meter fitted. If you’re unsure who your supplier is visit www.water.org.uk and enter your postcode.
Using less water in your house and garden may help you to reduce your bill. Making small changes to your daily routine, such as turning the tap off when you brush your teeth, having a shorter shower, or only running the washing machine when you have a full load can make a big difference. Around 20% of the water used in the home is heated, so saving water could also help to reduce your energy bill. For further information and helpful tips please click here.
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