The water regulator’s decision to raise bills by around £31 a year from April has been dubbed a “national scandal”.
Ofwat announced today that water bills in England and Wales will rise by 36% by 2030 in an effort to address pollution and mounting debt.
That works out to an increase of £157 over the next five years, taking the average annual bill from £440 to £597.
Ofwat chief David Black said it was a chance for water companies to “regain customers’ trust” by upgrading the system.
But Lib Dem MP Tim Farron slammed the “outrageous” move from the water regulatior, saying customers are having to pick up the bill for water firms who have got away “scot free” away polluting British waterways with sewage.
He said: “Let’s be clear, this is a national scandal that has been ignored by successive ministers who have watched on whilst inept water companies have plunged themselves into unprecedented levels of debt, leaving customers to pay the bill.
“It is outrageous that water companies have got away scot free polluting British waters with gallons of sewage, and failing to invest in fixing leaky infrastructure, whilst company executives are stuffing their pockets with bonuses.”
Ofwat’s decisions comes after it said in July that it would allow bills to increase only by an average of 21% – before inflation – to fund new infrastructure.
However, the water companies later asked for more.
Southern Water asked for bills to go up by 84%, while Thames Water wanted a 53% rise despite paying £158.3m in dividends to shareholders and later being fined by Ofwat.
Farron added: “The Liberal Democrats have long led the campaign to end this crisis and we urge the government to finally replace Ofwat with a new, effective regulator to hold water companies accountable, and introduce a single social tariff for water bills to help eliminate water poverty.”
Labour MP Clive Lewis also protested against the increase, wrote on X: “Ofwat is making us pay for decades of criminal behaviour by water companies. Time to scrap both of them and give the public a real say over the future of our water.”
Consumer Council for Water’s Mike Keil said these bills are “still more than what many people can afford”, and estimated that at least two in five households will find it difficult to pay these new prices.
Meanwhile, River Action founder Charles Watson said: “It is a travesty that customers are now being forced to pay higher water bills, especially when these increases are directly the result of years of under-investment by the water industry.
“Shareholders in the water companies must be laughing all the way to the bank.
“With customers now being forced to foot the bill to repair and upgrade the water industry’s crumbling infrastructure, the very people who have already benefited for years from huge dividend payments, will see the value of their assets increase in thanks to this customer funded investment.
“The real question remains staring us unanswered in the face: when will those who have profited so rapaciously from decades of operational neglect, causing horrendous environment damage in the process, finally be held accountable and made to pay up for their totally irresponsible custodianship of these essential public services?”
Environment secretary Steve Reed blamed the crisis on the Tory government over the weekend, writing in The Telegraph: “We are facing this twin crisis of water pollution and water shortages because the Conservatives refused to invest to upgrade crumbling water infrastructure.
“Instead they let water companies divert customers’ money to line the pockets of their executives and shareholders.”
He added: “The public are right to be angry.”
