Record investment as average household water bills rise £33 a year from April

• The 5.4% increase – 2 percentage points higher than the most recent inflation figure – will help to fund the next tranche of £104 billion programme to 2030.  
• To fund these record levels of investment, customer bills will rise by an average £2.70 per month from April 2026.
• Companies are preparing to invest £20 billion over 2026-27 to help to secure our water supplies, support economic growth and end sewage entering our rivers and seas.
• In recognition of cost of living pressures, more households will receive discounted bills than ever before. About an extra 300,000 households will now receive support, taking the total number to around 2.5 million. The expected average discount will be around 40%.  

Household water bills in England and Wales will rise by an average of 5.4% - around £33 a year, or approximately £2.70 per month - from April, reflecting significant investment in upgrading water infrastructure. The rise is two percentage points above December’s official inflation figure.  

Water companies are currently delivering a £104 billion investment programme to secure our water supplies, support economic growth and end sewage entering our rivers and seas. Capital investment is at record levels and up by more than a third in just two years.

The money raised by water bills can only be used to fund infrastructure that is independently determined to be new, necessary and value for money. There is a money-back guarantee which means that if improvements are not delivered, customer bills will automatically be refunded by the regulator.

Support for households

More than two million households currently receive help with their bills through social tariffs, the WaterSure scheme and other affordability measures - four times the number of broadband customers receiving financial support. An extra 300,000 households are expected to receive support in 2026-27, taking the total number to around 2.5 million. The expected average discount will be around 40%. A total of £4.1 billion in support has been committed for the period 2025–2030.  

Support varies locally and can include reduced bills, payment breaks and, in some cases, debt forgiveness. Customers who are struggling should contact their water company to see what help is available, as support can often be tailored to individual circumstances.

David Henderson, Water UK Chief Executive, said:

“We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas.  

“While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult. That is why we will help around 2.5 million households – more than ever before – with average discounts of around 40% off their water bill.”

Regional variation

Bills vary across England and Wales depending on geography, population and investment needs. A regional breakdown of average household bills for 2026-27 is available below: 

Examples of recent and future investment include:

United Utilities will begin a £3 billion upgrade in 2026 of the 110 km Haweswater Aqueduct which carries 570 million litres of water every day to 2.5 million people in Cumbria, Lancashire and Greater Manchester – or nearly 5 per cent of England’s population.

Anglian Water is investing £47 million to construct 35 new storm tanks across the East of England. The company has already invested £96 million which delivered 112 upgraded and new storm tanks to strengthen resilience against extreme weather events.

South West Water is investing £760 million over the next five years to reduce spills from storm overflows across the south west. The investment has already seen the company significantly reduce sewage spills in 2025.

Bournemouth Water will continue a £113 million upgrade of Alderney Water Treatment Works north of Bournemouth. When completed the treatment works will use the advanced treatment technologies to supply water to 250,000 customers.

Essex and Suffolk Water will complete a nearly £50 million investment at the Barsham water treatment works in Suffolk. This includes the building of a new underground reservoir that will hold 20 million litres of water to supply more than 75,000 customers.

Thames Water will continue a £20 million programme to replace water mains pipes on Pentonville Road between Kings Cross and Islington in London. The work will increase the capacity of the pipes while also reducing leaks and bursts.  

Welsh Water completed a new nature-based solution at Pont-y-felin near Pontypool in 2025. The project is the first of its kind in the UK, using reed beds and wetlands to naturally treat discharges from a nearby storm overflow and protect the Afon Lwyd river.

South East Water – after being talked about for more than 80 years, Ofwat finally gave approval to build a new reservoir in Kent. In 2026, South East Water will carry out vital planning and design work. When completed it could supply up to 22 million litres a day – equivalent to 275,000 full baths!

Yorkshire Water will continue a £406 million programme to replace more than 1,000km of mains water pipes across the entire region to reduce bursts and leaks. More than 60 mains replacement projects began in 2025 and over 120km of new mains have been laid.

Severn Trent is spending £415m to lay 870 miles of new water pipes across the Midlands. The investment will reduce leaks and improve water quality while creating 440 local jobs.  

Southern Water is investing £99m to improve and protect water quality on the Isle of Wight. This involves improving treatment sites, pumping stations and the network, as well as working with partners to install sustainable drainage solutions. This will help protect the Island from flooding and storm overflow releases.  

Portsmouth Water will continue work on the Havant Thicket reservoir – the first new reservoir to be constructed in the UK in over 30 years. When finished the reservoir will hold up to 8.7 billion litres of water.

Hafren Dyfrdwy is investing in new water pipes, including £800,000 in Powys alone. This forms part of its biggest-ever investment of £266 million by 2030.

Wessex Water is investing £34 million to expand the Saltford sewage treatment works serving the city of Bath and surrounding areas. The work is due to finish in spring 2026.

ENDS

Notes for editors

• The 5.4% figure reflects the average increase in household bills across England and Wales for 2026-27.
• £104 billion investment covers the period 2025-2030.
• Five water companies have appealed Ofwat’s final determinations to the Competition and Markets Authority (CMA). Subject to the CMA’s final decision, total projected investment between 2025 and 2030 could go up or down.