Households in England and Wales already reeling from the cost-of-living crisis will see the largest increase to their water bills in almost 20 years from April. Industry body Water UK said the 7.5% increase would mean bills rise to an average £448 a year.
Consumer groups warned the hike could prove the tipping point for the one in five customers already struggling to pay.
But Water UK argued that water bills remained lower in real terms than they were a decade ago and said this year's increase reflected higher energy costs, with water firms using around 2% of the nation’s electricity.
