Average household water bills in England and Wales will rise by £33 a year from April, as water companies prepare to deliver record levels of investment aimed at improving water security, infrastructure resilience and environmental performance.
The increase represents an average rise of 5.4%, equivalent to around £2.70 per month, and is two percentage points above the most recent official inflation figure. The additional revenue will support the next phase of a £104 billion investment programme running to 2030.
Water companies are expected to invest around £20 billion in 2026–27 alone, focusing on securing water supplies, upgrading ageing infrastructure and reducing sewage discharges into rivers and seas.
Funding record levels of infrastructure investment
The water sector is currently delivering capital investment at record levels, with spending up by more than a third in just two years. The £104 billion programme includes major upgrades to water treatment works, sewer networks, reservoirs and nature-based solutions.
Regulators require that money raised through customer bills can only be used to fund infrastructure that is independently assessed as new, necessary and value for money. A money-back guarantee is in place, meaning customers will receive automatic bill refunds if agreed improvements are not delivered.
Support for households facing cost pressures
In recognition of ongoing cost of living pressures, water companies are expanding support schemes for customers who struggle to pay their bills. Around 2.5 million households are expected to receive help in 2026–27, an increase of approximately 300,000 compared with current levels.
Support is delivered through social tariffs, the WaterSure scheme and other affordability measures, with average discounts expected to be around 40%. A total of £4.1 billion has been committed to customer support between 2025 and 2030.
Assistance varies by region and can include reduced bills, payment breaks and, in some cases, debt relief. Customers experiencing financial difficulty are encouraged to contact their water company directly to explore available options.
Regional variation in bill changes
Household bills vary across England and Wales depending on local geography, population density and investment requirements. While the national average increase is £33 a year, changes differ significantly by company and region.
Across water and wastewater companies, average annual bills for 2026–27 range from £535 to £759. Water-only company bills remain lower overall, though some areas will see percentage increases above the national average.
Major projects across the UK
The investment programme includes a wide range of projects already underway or planned over the next five years. These include major upgrades to water treatment works, large-scale mains replacement programmes, new stormwater storage and the construction of new reservoirs.
Projects range from long-term upgrades to strategic aqueducts and reservoirs, to regional programmes targeting leakage reduction, water quality improvements and nature-based solutions designed to reduce storm overflow discharges.
Collectively, the investment is intended to improve service resilience, protect the environment and support economic growth as the UK adapts to climate change and population growth.
David Henderson, chief executive of Water UK, said the investment programme was essential to address long-standing challenges across the sector.
“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,” he said.
“While we know this increase will be difficult for some households, we will help around 2.5 million customers with average discounts of around 40% off their water bills.”
