Official figures show that from 1 April households across England and Wales will see an average 26% or £123 rise in their annual water bills.
The industry body Water UK has confirmed the price hike which means the average water bill will rise from £480 to £603 for 2025/26.
Water UK chief executive David Henderson said, “We understand increasing bills is never welcome and, while we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult.
“Water companies will invest a record £20 billion in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”
The Consumer Council for Water (CCW) chief executive Mike Keil said, “These rises are the largest we’ve seen since privatisation and will heap considerable pressure on millions of customers who are already having to make difficult choices.
“Customers want to see investment in improving services and cleaning up our rivers but that can’t come at an unbearable cost to struggling households.
“Around 2.5 million households are already in debt to their water company and there is a danger that number will grow unless some companies show more ambition around financial support.”
James Wallace, the chief executive of campaign group River Action, said, “We’re being told to celebrate the ‘record investment’ of water companies, but in reality, it is the public that will pay the price for their decades of neglect.
“Instead of fixing crumbling infrastructure, water companies have saddled themselves with billions in junk debt, leaving us with sewage-choked rivers, and paying extortionate interest rates through bill hikes.
“Communities and customers won’t be fooled by this web of lies. It’s time for broken utilities like Thames Water to be put into Special Administration and refinanced to operate for public benefit not investor return.
“Meanwhile, the Water Commission must end the failed privatisation experiment and reform the broken regulators to ensure a sustainable and resilient water and sewage system for future generations. Rivers do not need economic growth, they enable it.”
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