Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government, following reports that water companies plan to raise customer bills by up to 70 per cent over the next five years, what assessment they have made of the impact of those rises on (1) household budgets, (2) consumer spending, and (3) overall economic stability; and what steps they are taking to mitigate any such challenges.

The public have made it clear clean and plentiful water supply and environmental protection is a priority. New infrastructure will need to be paid for, and while water companies can attract private investment, this will also need to come from customer bills. There is a balance to be struck in terms of priorities – ensuring there is prioritised spending on infrastructure to reduce environmental harm and secure supplies for the future without unduly hitting billpayers with a big rise.

All water companies submitted their proposed business plans for Price Review 2024 to Ofwat in October 2023, which set out planned investment and proposed bill increases for 2025-2030. These are now undergoing scrutiny by the independent regulator Ofwat to ensure they meet the targets for environmental improvements and other obligations, whilst also offering value for money for consumers. As such, current reports of increases to bills over the next five years are not yet confirmed. Increases will be confirmed after Ofwat’s final determinations are published later this year, and new price controls will then come into force from 1st April 2025.

We are committed to a water sector that delivers for customers, the environment and wider society, and recognise that some households may struggle to pay their water bill in full. All water companies offer reduced bills for eligible customers via the WaterSure scheme and social tariffs as well as a range of other financial support measures. We are continuing to work with industry to explore options to improve existing social tariff arrangements.