Households can expect their water bills to rise to an average of almost £420 a year from April, compounding a record rise in energy costs and an increase in national insurance contributions that are due in the same month.
Bills will rise by an average of 1.7% in England and Wales from April, according to the industry body Water UK, pushing up the typical annual bill by roughly £7 to £419 a year. In some parts of England bills could rise by up to 10%, while others may experience a modest decrease.
The increase will come as further unwelcome news to hard-pressed households after Thursday’s announcement of the imminent £693 increase in home energy bills, which will drive the cost of gas and electricity to an average of £1,977 a year and plunge millions of homes into fuel poverty.
Christine McGourty, the chief executive of Water UK, said customers would pay “little more than £1 a day for their water and sewerage service” and there was “a wide range of support available for those in need”.
“But we know this is a difficult time for many, and no one should have to worry about their household essentials,” she added.
Jess Cook, who leads the water poverty programme for National Energy Action, a fuel poverty charity, said research had shown that more than 40% of those struggling to pay their water bills would bathe less to reduce their water bills. Almost a quarter would cut back on food or personal hygiene products in order to save money.
Although many households qualify for a social water tariff, which can save about £148 a year from the average bill, about five out of six customers who cannot afford their water bill are not receiving the financial support they need.
“Water is often overlooked when it comes to saving money but there are many ways to reduce your bill,” Water UK said. “These savings could help free up precious pounds to cover other rising costs, including energy, food and national insurance contributions.”
The deepening cost of living crisis facing households has prompted the chancellor, Rishi Sunak, to offer a £9bn package of measures from the Treasury to help households shore up their ailing finances. These include a repayable £200 discount off their energy bills in October, while council tax payers in England in bands A to D are to receive a rebate of £150 from their bills in April, which will not have to be paid back.
Announcing the support on Thursday, Sunak said the rise in energy costs, which will affect 22m homes, would mean that bill payers would “feel the pinch”, and warned households to brace themselves for further increases in energy costs later this year.
“The price rise is so significant that it’s not just those families who are on benefits that are going to feel the pinch, it’s actually middle income families as well,” he said.
