Average water bills to rise by 2% from April in England and Wales

Hike comes days after water companies told by regulator to improve their business plans

Water UK has said the average water and sewerage bill in England and Wales is to rise by 2 per cent from 1 April.

The water provider said the new average bill will be £415, an increase of £8 from the current average.

Michael Roberts, Water UK chief executive, said: “We’re on course to see extra investment and a decade of falling bills, showing a water industry that is dynamic and passionate about delivering real benefits for customers, the environment and the country as a whole.

“The water industry’s record has been good over the past 30 years – cutting leakage, keeping bills affordable, improving water quality and cleaning up rivers – but it’s clear that water companies have higher ambitions for the future of water with customers right at the heart of everything that they do.”

The group said the below-inflation rate rise will mean bills have been reduced by more than 5 per cent in real terms between 2015 and 2020.

Water UK also said water companies in England and Wales will invest more than £8bn over the next two years and plan to spend more than £50bn from 2020 to 2025.

The extra funding will go towards cutting leakages by 16 per cent, reducing bills by 4 per cent and increasing support for people who find it difficult to pay bills by 90 per cent.

The bill hike comes days after the industry regulator, Ofwat, told water companies to improve their business plans.

The watchdog has previously criticised firms for damaging customers’ trust with poor performance and excessive executive pay.