One in five households struggled to pay their water bill

Almost one in five households struggled to pay their water bill in the last year, Citizens Advice has said. The advisory service found more than a fifth (21 per cent) of those who struggled to pay found themselves falling into debt with their supplier. The survey, taken at the beginning of August, and following the largest single-year increase in household water charges since privatisation of the industry, found that more than two fifths (42 per cent) of those finding it hard to keep pace with their bills had been forced to cut back on groceries and energy as a result. Over a third of those struggling (35 per cent) were rationing water, including by cutting showers, toilet flushes and clothes washing.

The hike in charges, announced in January, increased the average household water and sewerage bill from under £500 to more than £600 a year. However, households have been hit particularly hard since April with an average hike of £86 or 20 per cent front-loaded into the coming year, with smaller percentage increases in each of the next four years. Factoring in inflation, which is added to bills each year, the 2025-26 increase in the average bill is £123, or 26 per cent. In return, the sector has pledged to deliver a record five-year package of investment to improve services and clean up rivers, streams and seas. However Citizens Advice found that higher bills since April kick-started problems for a third (31 per cent) of those facing difficulties.

The charity said that although there were benefits to being cautious with water use, it was concerned about the water rationing it had uncovered. Three quarters (75 per cent) of those cutting their water use due to difficulties affording it were reducing bathing or showering, while 63 per cent were limiting toilet flushes and 77 per cent washed their clothes less often. Citizens Advice is calling for a single social tariff for households on the lowest incomes, describing existing social tariffs as a “postcode lottery”, with each water provider having different rules on who qualifies for help. Just 16 per cent of consumers said their water provider had told them about ways to reduce their bills since April, rising to 18 per cent among low-income households and 30 per cent among those who say they can rarely or never afford their bills.

Citizens Advice chief executive Dame Clare Moriarty said: “Long overdue and much-needed investment in the water sector can’t come at the cost of higher bills that push low-income households into debt or impossible choices. “Every winter we hear of families turning off the heating. “Now we anticipate those same households will have to ration showers or cut down on laundry for fear of their water bill. “The Government has shown it’s committed to addressing the water industry’s systemic issues. “Now it needs to create a single social tariff without delay to end the postcode lottery for support, and ensure that those who need this get it automatically.”

A spokesman for Water UK, which represents firms, said: “We understand increasing bills is never welcome and, while we urgently need investment in our water and sewage infrastructure, we recognise bill rises are difficult for many households. “That’s why water companies are more than doubling the help available, with £4.1 billion in financial support put forward over the next five years. “We urge anyone who is struggling to pay to get in touch with their water company to discuss the range of support available.” A Defra spokesman said: “We are taking decisive action to clean up England’s rivers, lakes and seas for good, and protect families from massive bill hikes.

“Under this Government, the number of customers that will receive help with their bills through social tariffs has grown — from 4 per cent to 9 per cent. We are also working with industry to keep support schemes under review to ensure vulnerable customers are supported.” The Citizens Advice survey follows the Consumer Council for Water (CCW) reporting that household complaints to the watchdog had soared to their highest level in nine years. CCW said complaints escalated to the watchdog by household customers in England and Wales rose for the third year running, up 3 per cent to 8,235 from 7,977 in 2023-24.