Water bills in England and Wales to rise by average of £10 per month
The average annual water bill will rise by £26% or £123 in the next financial year alone, according to industry figures covering England and Wales.
Water UK confirmed how inflation-busting hikes, determined by the regulator Ofwat in December, would play out from 1 April when a new five-year pricing period begins.
The watchdog allowed bills to rise sharply from 2025-30, but not by as much as suppliers had wanted, to help fund badly needed infrastructure upgrades in key areas, such as storm overflows to prevent sewage spills.
Water UK, which represents the water firms, said the average water and wastewater bill would go up from £480 to £603 during 2025/26 – an increase of about £10 a month.
But the increases will be even harder to swallow for many.
Southern Water customers will see the largest in percentage terms, a 47% increase, taking their average bill to £703.
Bills for households covered by Hafren Dyfrdwy and South West Water will rise by 32%.
Thames Water’s 16 million customers face a 31% hike to £639 – a rise of £151 – at a time when the company is still scrambling to secure its financial future amid a massive debt pile that could yet tip it towards a special administration process.
Water UK explained that the rises may be higher than customers were expecting as the annual totals now included inflation calculations.
The body also said that the increases across households would also vary, depending on circumstances such as water use and whether a water meter was installed.
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They will come into force at a time when consumers are facing a surge in other costs.
Industry estimates suggest another hefty increase in energy bills will be seen from April, when the energy price cap is adjusted to reflect higher wholesale prices.
Council tax is also among the bills set for above-inflation rises.
Poorer households get support
Water UK said that it recognised the impact that rising water bills would have on poorer households, pledging that more than three million would receive support worth £4.1bn over the five-year pricing period.
It urged those concerned about paying the increase to contact their supplier.
Water UK also sought to reassure customers that they would see a return, following widespread anger over historic dividends for shareholders.
Water UK said firms would invest around £20bn each year to 2030.
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Upgrade works will include nine new reservoirs and increased capacity at 1,700 wastewater treatment works to reduce pollution and clear up rivers.
Water UK admits rises ‘will be difficult’
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 £20bn in 2025-26 to support economic growth, build more homes, secure our water supplies and end sewage entering our rivers and seas.”
The industry has argued that constraints on bills over 15 years, coupled with climate change and population growth, have been responsible for the growing pollution crisis.
Regulator says bill rises are ‘challenge’
Ofwat has denied this, saying companies must take responsibility.
Its chief executive David Black said of the bill rises ahead: “We recognise the challenge that some customers are facing with increasing financial pressures and understand that the water sector is not the only area where customers are faced with rising costs.
“While water bills will vary depending on the circumstances of each household, the average increase forecasted for 2025/26 will be 26% or £123.
“We have pushed companies to double the amount of support over the next five-year period and strongly encourage customers who are struggling to pay their water bills to contact their water company to access this.”
The Bishop of Liverpool has announced his retirement days after facing allegations of misconduct from two women, including another bishop.
One woman said the Right Reverend Dr John Perumbalath kissed her without consent and groped her, while the second accused him of sexual harassment.
The bishop has vehemently denied the allegations – and in his retirement letter, published online on Thursday, he reiterated his denial.
The letter, shared by the Diocese of Liverpool, read: “Having sought the permission of His Majesty the King, I have today taken the decision to retire from active ministry in the Church of England.”
Addressing the accusations, he continued: “Since those allegations were made I have consistently maintained that I have not done anything wrong and continue to do so.
“I do not wish this story to become a distraction for this incredible diocese and its people whom it has been an honour and joy to serve,” the bishop says in his letter.
“This is not a resignation occasioned by fault or by any admission of liability.”
The exact date for when the bishop’s role will formally end is yet to be decided, but he is stepping back from ministering and leading the diocese as of Thursday.
The letter continued: “I have taken this decision for my own well-being, my family and the best interests of the Diocese.
“I have informed the Archbishop of York of my decision and I understand he will put in place the necessary arrangements for episcopal oversight of the diocese for the remainder of my time here and during the vacancy.”
Bishop Perumbalath has insisted his retirement is not an admission of guilt
The Archbishop of York Stephen Cottrell – who has faced calls to resign over separate safeguarding failures – said: “I respect his decision and thank him for his ministry.”
“My thoughts and prayers continue to be with all those who have been affected by this situation,” he continued. “I am committed to ensuring stability during this time of transition and will be putting the necessary arrangements in place to provide episcopal oversight for the diocese.”
An acting bishop will be announced in the coming days.
The Archbishop of York (pictured) has welcomed the decision – which comes at a tumultuous time for the Church of England
The diocese – which on Wednesday pressured the bishop to step aside – said in a statement: “We acknowledge his decision in taking this step for the good of the Diocese of Liverpool.
“This is a deeply painful situation, and we hold all concerned in our prayers.”
The misconduct allegations were reported by Channel 4 earlier this week but the first dates back to 2023, the Church of England confirmed.
It said: “The complaint was looked into according to statutory safeguarding guidance… and an independent risk assessment undertaken.
“This process concluded that there were no ongoing safeguarding concerns, but a learning outcome was identified with which the bishop fully engaged.”
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Water bills to rise in England and Wales
A “further disclosure was made by another woman” shortly after, the Church said. This was “assessed not to be a safeguarding matter but a matter of alleged misconduct,” it added.
Bishop Perumbalath’s resignation comes at a tumultuous time for the Church of England, which has recently seen Justin Welby quit as Archbishop of Canterbury over the handling of another case.
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