Are the new water price hikes fair? Take our poll and have your say
Are the new water price hikes fair? Take our poll and have your say
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Water bills are about to soar for millions of households this April, and the increases are pretty shocking - but are they fair?. We're talking hikes of up to £224 a year for some - the biggest jump since water privatisation. With prices rising as much as 47%, it's a pretty tough pill to swallow, particularly for families already feeling the pinch. Consumer watchdogs are sounding the alarm, with Mike Keil, CEO of the Consumer Council for Water, saying: "These rises will heap considerable pressure on millions of customers who are already having to make difficult choices.".
And while we’re all bracing for higher water bills, two water companies - United Utilities and South West Water - have decided it’s a good time to reward shareholders by increasing their dividend payouts to match inflation. And this is despite customers facing price hikes far beyond inflation, with some areas seeing their bills jump by double digits. For example, in the North West, United Utilities is planning to hike bills by 23%, which works out to an extra £112 a year -taking the average annual bill to £598. South West Water is upping their bills even more, by 32% (or £166), pushing the average to £686 a year. Crisis-hit Thames Water is increasing its bills by 30%, or £151, to £639.
If you can't see the poll, click here. But the real stinger is Southern Water, which is set to raise its prices by a massive 47% - that’s a £224 increase, pushing the average bill to £703. Regulator Ofwat did approve price hikes for the next five years, but it’s clear that for many people, these rises are hitting hard. Water UK, the industry trade body, says the average household water bill in England and Wales will increase by 26% - an extra £123 - taking it from £480 to £603 from April 1. Of course, depending on whether you have a water meter and how much water you use, your bill could look very different.
Water companies argue that these increases are necessary to fund improvements to services and help clean up our rivers and seas. But the Consumer Council for Water is worried about the impact on customers who are already making sacrifices. Their research shows that 44% of people have cut back on essentials like food and heating just to keep up with bills, and one in four people with a water meter have started using less water to avoid sky-high bills.
