Cash-strapped consumers face a massive hike in water prices over the next five years – leaving them hundreds of pounds out of pocket.
Household bills are due to rise by an average of two per cent above inflation until 2027.
With inflation predicted to hit six per cent in April, that means the average family bill could rise by an average of £263.
Those living in the poorest areas of Scotland face having to fork out an additional £143.
And people in bigger houses and higher council tax bands could pay up to £431 extra over the five-year period.
But with water costs tied in to council tax payments and some councils predicted to raise their taxes, the actual increases in annual bills could be much higher.
Scottish Water were set the new inflation-busting charges by the Water Commission of Scotland, which were in turn approved by the Scottish Government and introduced for the first time last year.
The Commission has also recommended a further two per cent rise above inflation until 2040.
Jackie Baillie, deputy leader of Scottish Labour, said: “It is utterly unacceptable that the Scottish Government has told Scottish Water to make such eye-watering price rises at this fragile time for family finances. What is even more galling is that they are sitting on massive capital reserves while they help push hundreds of thousands into a cost-of-living crisis.
“The Government must reverse its decision and protect the people of Scotland from this unfair price hike.”
Scottish Water, which is state owned, delivers all household and business water services and maintains the pipe and sewer network in Scotland. Two years ago, it was accused of sitting on a £391million “cash stash” in its accounts.
Scottish Water will use the extra money for infrastructure improvements and efforts to meet zero carbon emissions targets.
Citizens Advice Scotland says a growing number of people need help with their water bills.
Its water policy boss Gail Walker said: “Water charges can have a substantial impact on household budgets. We welcomed last year’s decision by the Scottish Government to approve a 10 per cent increase in the Water Charges Reduction Scheme, which offers protection for those on the lowest incomes.
“However, our greatest concern is for those who do not qualify for support. These households are facing a cost-of-living crisis with rising energy bills, inflation and the removal of pandemic support.”
Based on an eight per cent increase over five years, a typical family of four living in a three-bed semi – at Band E – could see their bills rise from £561 to £824.
Water charges in the least affluent areas – Band A – would rise from £306 to £449. People in the most affluent areas – Band H – face a rise from £918 to £1349.
Sean Clerkin, of the Scottish Tenants Organisation, called on the Scottish Government to order Scottish Water to stop the price hike and freeze all charges.
He said: “The Bank of England has predicted the rate of inflation could be six per cent by April. That would mean a price hike of eight per cent in Scotland.
“It could be one price increase too many for those struggling to make ends meet.”
Scottish Water said: “We need to invest up to £4.5billion in the coming years in vital public water and waste water infrastructure.
“This will help protect services for five million customers against the impact of climate change, increasingly ageing assets and population changes.
“Any future increases in the amount customers pay will be carefully implemented, with support provided to households who are eligible for discount, exemption or reduction.”
The Scottish Government said: “Over 470,000 households receive some level of council tax reduction and will benefit from lower charges as a result of increasing support through the water charges reduction scheme.”
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