Water bills set to rise adding to the cost of living crisis

Water bills are set to rise from April, it has been announced, adding to the cost of living crisis due to hit households across the country.

The average water and sewerage bill will go up by 1.7% in the next financial year, far below annual inflation rates, industry body Water UK said.

It will add £7 to the average bill, an increase which pales in comparison to the £693 added to many households’ energy bills from April.

It means the average yearly bill will rise to £419, with support available for thousands more.

At the moment, 1.1 million customers get some form of help to pay their water bills, according to Water UK. This will grow by another 300,000 by the middle of the decade.

“Customers will continue to pay little more than £1 a day for their water and sewerage service, helping to directly fund significant investment in improving infrastructure and enhancing the environment,” Water UK chief executive Christine McGourty said.

“But we know this is a difficult time for many, and no one should have to worry about their household essentials.

“There is a wide range of support available for those in need, and I would urge anyone who’s concerned to get in touch with their water company.”

While the average rise of £7 sounds modest, the Consumer Council for Water (CCW) warned it will vary.

Bills could rise further depending on who supplies the water, whether households have a water meter, and how much water they use.

CCW boss Emma Clancy said: “Some households could potentially save hundreds of pounds by switching to a water meter, while others on a low income may be eligible for water companies’ wide range of assistance schemes.

“Simple steps to reduce your hot water use could also take some of the heat out of rising energy costs.”

The cost of living is spiralling for homes in the UK.

On Thursday, Ofgem announced a 54% hike in the cap on energy bills, which will hit 22 million households.

The price cap has more than doubled as the cost of wholesale gas has soared and four times the price it was this time last year.

The change will take effect in April and follows a 12% rise in October, with it expected to rise again in six months.

Households on their energy supplier's default tariff, will see their energy bills rise to an average £1,971.

The Government will help people with the rising cost of energy in the same way it “stood behind the British people through the pandemic”, Rishi Sunak has said.

The Chancellor said 80% of all homes in England will benefit from a £150 council tax rebate to help with the cost of energy in April.

Meanwhile, the Bank of England has warned that inflation is set to spike to 7.25% in April, which could reduce disposable incomes by 2%.

The Bank’s Monetary Policy Committee (MPC) voted 5-4 to raise rates from 0.25% to 0.5% – marking the first back-to-back rise since 2004, coming after a quarter point increase at its last meeting in December.

It came as the Bank cautioned that rocketing energy prices will drive inflation to an eye-watering 7.25% in April, which is the highest level since August 1991.

Ofgem’s 54% energy price cap increase to around £1,971 in April is the driving force behind the inflation forecast hike, with the Bank predicting around another 10% rise in the cap this October.