Residents in England and Wales will see their water bills rise by an average of 13% starting in April 2024. This increase, approximately £33 annually or £2.70 per month, is aimed at funding necessary upgrades to the water infrastructure, according to Water UK. Following last year’s record hike, the national average water bill will reach £639 per year.
David Henderson, chief executive of Water UK, acknowledged the burden that rising bills impose, stating, “We understand increasing bills are never welcome, but the money is needed to fund vital upgrades.” This price adjustment exceeds current inflation rates by 2%. Water companies are preparing to invest £20 billion over the next two years to improve water supply reliability and to address the issue of sewage discharge into rivers and seas.
The financial impact of these increases will be felt most acutely by low-income households, making it essential for residents to explore available support options. Most water companies offer “social tariffs” that provide substantial discounts for eligible individuals. Some households may qualify for discounts of up to 90% on their water bills.
Despite the available support, a substantial £745 million in water bill assistance went unclaimed in 2024, according to a report by Policy in Practice. Households with an annual income below £19,995 (excluding certain benefits) or those receiving income-related benefits such as Universal Credit or Jobseeker’s Allowance may qualify for these reductions.
Under the social tariff scheme, annual clean water bills are capped at £143.80, with a lower fixed rate of £95.80 for those receiving council tax support. Eligibility is determined through an individual financial assessment. Households that spend more than 5% of their income on water bills may receive a discount of up to 50% through a reduced metered tariff.
Additionally, low-income households facing financial difficulties can access a low-rate tariff based on their payment capacity. For instance, if all adults in a household receive Pension Credit, they may qualify for a discount of around 20%. Specific income thresholds apply, with eligibility for discounts based on household composition and income.
Discounts are also available for households with incomes below £21,011 (plus £1,500 per child) or those receiving Pension Credit. Eligible households will see a 60% reduction in their first year and a 40% reduction in the subsequent year.
For those awaiting a Universal Credit application without any income, charges will be fully waived for eight weeks. Households earning below £12,000 (one person), £18,100 (two people), or £19,100 (three or more) can also qualify for support, with bills capped at £319.03 per year.
The pricing scheme provides flexibility, allowing households earning less than 26,000 or those with a member receiving Pension Credit to receive up to a 40% discount if their water bill constitutes 3% or more of their net income. Discounts range based on financial assessments and household circumstances, with the lowest combined bill set at £59.
Moreover, households with a water meter have access to various discount schemes. Those earning less than 21,000 (excluding certain benefits) can have their water bill capped at £91.12 annually, while discounts of 15% to 85% are available for qualifying households.
In conclusion, while water bills are set to rise significantly for many households in England and Wales, a range of support options exists to help mitigate the financial strain. Residents are encouraged to check their eligibility for these discounts to ensure they are not missing out on crucial assistance.
