Household water bills in England and Wales will rise by an average 5.4% from April adding £33 a year or £2.70 a month to the typical bill as the sector pushes through record investment.
The increase is two percentage points above the latest inflation figure and is being driven by what companies say is an unprecedented capital programme to upgrade ageing water and wastewater infrastructure.
Water firms are delivering a £104 billion investment programme through to 2030 with around £20 billion due to be spent in 2026–27 alone to secure supplies, support economic growth and cut sewage discharges into rivers and seas.
Water UK said capital spending is now at record levels and more than a third higher than just two years ago with bill income ringfenced for projects independently judged to be new, necessary and value for money.
The trade body said a money-back guarantee remains in place meaning customers are automatically refunded if promised improvements are not delivered by companies.
David Henderson, Chief Executive at Water UK, said:
We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas.”
While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult. That is why we will help around 2.5 million households – more than ever before – with average discounts of around 40% off their water bill.”
Bills will vary sharply by region reflecting local geography, population and investment needs with some households seeing far steeper rises than the national average.
Severn Trent customers face the largest increase among major water and wastewater firms with bills up 10% to £587 while United Utilities rises 9% to £660 and Southern Water increases 8% to £759.
At the other end of the scale Thames Water bills rise just 0.4% or £3 to £658 while Wessex Water customers see a 3% increase to £695.
Support schemes are being expanded alongside the price rises with an extra 300,000 households expected to receive help next year taking the total to around 2.5 million.
Water UK said around £4.1 billion has been committed to bill support between 2025 and 2030 with measures including discounted tariffs, payment breaks and targeted debt relief.
Ofwat’s interim Chief Executive, Chris Walters, responded to the rises by saying:
We will continue to monitor performance and hold companies to account as they progress on this journey. Money received by companies from customers is ringfenced for improvements, so if they do not deliver on their commitments, they will be made to return money to customers in their future bills.
“However, we also recognise that these bill increases may be difficult for some people. That is why we approved a doubling of company support available for customers who are struggling to pay and now, more than 2 million households are accessing this help.”
Copyright © 2026 Energy Live News LtdELN