Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of trends in the level of water bills in Fylde constituency since July 2024.
It is important that customers get value for money from their water bills and that support is available for those who need it. I meet water companies frequently to discuss a range of issues, including customer bills.
As the independent economic regulator, it is Ofwat’s responsibility to scrutinise water company business plans and ensure the prices water companies charge their customers are fair and proportionate. It does this through its Price Review, every five years. Ofwat published the results of the 2024 Price Review in December 2024, this sets out company expenditure and customer bills for the next five years, up to 2030. These price controls came into effect on 01 April 2025.
Price Review 2024 will deliver substantial improvements for customers and the environment through a £104 billion upgrade for the water sector - the highest level of investment in the water sector since privatisation. The average annual bill rise over the next 5 years will be £31 (or 36%). This will vary across households depending on their circumstances. Information on bills for each water company is available on Ofwat’s website.
All water companies have measures in place for customers who struggle to pay for their water and wastewater services, such as WaterSure, social tariffs, payment breaks and holidays, and debt management support. Moreover, Government expects industry to keep the current support schemes under review to ensure that vulnerable customers are supported.
The Government has committed to reforming the WaterSure support scheme which supports low-income households with high essential water use due to having a medical condition or three or more children living at home and has consulted on extending the list of qualifying benefits to include non-means tested disability benefits. This proposal is designed to provide better support for low-income households where a medical condition leads to high essential water use.
The proposed reforms would also increase support for existing households and update the regulations to reflect best practice adopted across the water sector. The department will publish the response to the consultation in the coming months.
Bill increases are necessary to make up for years of under-investment and make sure water companies can deliver a good service to customers and protect the environment.
The Government is also bringing forward root and branch reform to secure better outcomes for billpayers and restore trust and accountability. This includes the creation of a powerful new consolidated regulator, which will work to ensure water company bills are fair and affordable for customers. These reforms are detailed in the Government’s Water White Paper.