Water Bill Increase 2025: Five Firms to Hike Prices

By Emma Lunn | Published - 15 Oct 2025

Just when you thought your bills were mapped out, millions of households now face an unexpected hike in their water charges. Five of the country’s major suppliers, including Anglian Water and Southern Water, have successfully challenged the official price caps, winning permission to charge their customers more.

This decision is as another unwelcome squeeze on household finances. Below, we explain exactly which areas are affected, how much your annual bill is set to increase by, and the steps you can take to lessen the impact.

What’s on this page?

Why are water bills going up?
How water price rises are decided
How much will my bill rise by?
What about Thames Water – didn’t they appeal too?
If you need help with your water bills

Why are water bills going up?

The Competition and Markets Authority (CMA) has approved requests from Anglian Water, Northumbrian Water, Southern Water, Wessex Water and South East Water to hike consumers’ bills by more than previously agreed by Ofwat.

The companies appealed to the CMA in February for permission to raise bills by more than the 24% increase previously agreed by the regulator. The firms said higher bills were needed to upgrade aging infrastructure, meet environmental rules, and cover rising costs.

The green light from the CMA will let the five water firms charge an additional 3% on average – much less than they asked for. This will equate to an extra £556m over the next five years, which is about 21% of the £2.7bn the firms requested.

So while it could have been worse, it means that price rises will continue, especially for the 14.7 million customers of these firms.

Anne Pardoe, head of policy at Citizens Advice, says: “Ramping up water bills, when people up and down the country are already rationing showers and cutting down on laundry, is going to stretch budgets beyond breaking point.

“Long overdue and much-needed investment in the sector can’t come at the cost of low-income households being pushed into hardship.”

How water price rises are decided

Water companies can’t raise prices whenever they like – they must follow strict rules set by Ofwat. Under PR24 (Price Review 2024) Ofwat set price limits for 2025 to 2030, approving an average real-terms rise of £157 per household (around 36%) across England and Wales, on top of inflation.

But Anglian Water, Northumbrian Water, Southern Water, Wessex Water and South East Water all appealed to the CMA, arguing Ofwat’s limits didn’t allow fair returns. They asked for extra rises of 8 to 18%. The CMA granted only a small portion of these requests – describing them as “largely unjustified” – but many consumers will still struggle to pay their bills.

Mike Keil, chief executive of the Consumer Council for Water (CCW), says: “CCW’s own analysis suggests there was an opportunity to reduce these five companies’ financing costs, cutting bills by around £41 a year, but instead the CMA has chosen to increase their rate of return. There is a danger the customers of these companies will end up paying more, without seeing any additional improvements in return.”

How much will my bill rise by?

The CMA has published provisional figures for average water bills for the five companies, including how much bills would have risen if the companies’ requests had been agreed.

The following table shows the average annual bill for 2024-25, and forecasts for 2025-30 under Ofwat and CMA decisions.

Water Company	Average bill for 2024/25	Projected average bill 2025-30 before this decision	Projected average bill 2025-30 after this decision
Anglian	£491	£591	£599
Northumbrian	£422	£488	£495
South East*	£232	£274	£286
Southern	£420	£620	£638
Wessex	£508	£594	£622

*South East Water does not provide wastewater services – wastewater costs are billed by South East but will be set by the company that supplies them, either Thames, Southern, Severn Trent Connect or Icosa, depending on where you live.

The first price increases for 2025-30 have already kicked in. The average water bill in England and Wales went up by around £10 a month in April 2025, equating to an annual rise of about £123. The five-year price increases are front-loaded, meaning this will be the largest price increase in the period, with smaller increases following in subsequent years.

Water meters are used to record the amount of water consumption. using a gear and wheel system The numeral display has been completely sealed. Protection against water and dirt from the outside — Shutterstock / fongbeerredhot

What about Thames Water – didn’t they appeal too?

Thames Water was also asking for higher price rises but the company has paused its appeal until later in October while it works on a rescue deal. The UK’s largest water company has faced severe financial trouble for more than two years, burdened by heavy debt and poor performance, including repeated sewage spills.

In early October, lenders submitted a new rescue plan to avert Thames Water’s collapse, which includes a request for up to 15 years of leniency from river pollution rules, which could allow them to avoid fines in that period. If the turnaround plan is not agreed there is the possibility that the company could be temporarily nationalised.

How can I reduce my water bill?

Your water company is decided by where you live – each region in England and Wales is served by a single licensed provider. Unlike energy or broadband, there’s no competition for household customers, so you can’t switch water supplier. The boundaries were set when the industry was privatised in 1989. Some water companies charge their customers much more than other firms.

Homes are charged for water in two main ways. Some properties are unmetered, meaning they pay a fixed annual amount based on the property’s ‘rateable value’, or an ‘assessed charge’. In these cases, the bill stays the same regardless of how much water is used.

Other homes are metered, with charges based on the actual amount of water consumed. These bills include a standing charge plus a cost per cubic metre of water used. If you have a water meter, you can reduce your water bill by using less water.

If you don’t have a water meter, but you think you use less water than average, or less water than the rateable value of your home would suggest, you can ask to have a water meter fitted for free. If you find you are not better off after changing to a meter, you can usually change back to unmetered water within twelve months.

The Consumer Council for Water has a calculator to show you whether a water meter could save you money.

If you need help with your water bills

Currently, every water company has a social tariff which can help reduce bills for low-income households. Eligibility criteria and the level of support varies depending on the water company, so it’s something of a postcode lottery.

It may still be helpful if you’re on a low income, so do check it out if this applies to you and you're not already on a social tariff. To find what help might be available, look up the social tariff details on the CCW website: scroll down and search for your local water company to see what’s on offer.

The CCW and Citizens Advice are calling for the government to introduce a national social tariff, with eligible households automatically enrolled.

Sarah Coles, personal finance expert at Hargreaves Lansdown, says: “Older people on lower incomes will spend a bigger proportion of their income on the essentials – including water bills.

“To make life even more difficult, older people are more likely to live alone. Over half (51%) of those living alone are aged 65 or over – up from 46% in 2014. In fact, those aged 65 or over accounted for the total rise in people living alone over the past 10 years. Being on their own means they shoulder the burden of the bills without support.”

In England and Wales, there is also the WaterSure scheme, which can help by capping your bills at a set level if all of these things apply to you:

You are on certain benefits
You have a medical condition that means you might need to use more water (including Crohn’s disease, abdominal stomas or incontinence) OR if your household includes three or more children
You have a water meter or are willing to get one.

You can find out more about the WaterSure scheme from Citizens Advice.