Severn Trent customers face 10 per cent hike in water bills

Water bills across Shropshire and the Black Country are set to rise by ten per cent from April - almost twice the national average.

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Household bills across England and Wales will climb by an average of 5.4 per cent in the next financial year, the water industry has confirmed, but Severn Trent customers will be hit by a rise of almost double that.

The news comes just two months after it was announced that Severn Trent chief executive Liv Garfield was stepping down from the post after 11 years.

And in December 2024, industry regulator Ofwat said customers of the Coventry-based utility company would see their bills rise by an average of 47 per cent over the coming five years.

At the time, Severn Trent also announced a £15 billion plan which included more than £2 billion to be spent on improving river health and preventing storm overflows.

However, just  a few weeks later the listed firm said shareholders would be receiving a higher dividend.

A Severn Trent spokesperson said: "Severn Trent bills remain the second lowest in the country, £73 below the national average for water and waste services and £172 lower than the highest bill.

"We know bills rising can be worrying so we want our customers to know there's help if they need it. By 2030, we plan to be helping around one in six households with some form of financial support.

"This includes a discount on bills of up to £390 if customers are eligible and debt support. We are also committed to continue investing in the things our customers told us they care about.

"Around £8 million a day is being spent on investment like laying new pipes, brand new water sources, river health and creating thousands of jobs, as our £15 billion investment for the Midlands continues."

Water UK, the trade association for the water industry, said the increases commencing in April equated to £33 a year for the average household.

This is two percentage points above inflation but comes as companies prepare to invest £20 billion over 2026-27 to secure water supplies and end sewage entering rivers and seas.

There has been ongoing public anger about the amount of sewage being released into waterways, exacerbated by firms increasing bills to pay for upgrades after decades of underinvestment.

Ofwat has allowed water firms to put up bills by 36 per cent between 2025 and 2030, with most of that - 20 per cent or an average £86 - front-loaded on to last April's annual rise.

The Consumer Council for Water, which represents the interests of customers, warned that households were "impatient for change and need to see compelling evidence their money is being well spent".

Across England and Wales, there are significant regional variations in how much bills will rise.

Severn Trent opens applications for 100 apprenticeships
Severn Trent opens applications for 100 apprenticeships

Affinity Water, which supplies parts of London and the South East, has warned customers to expect a 13 per cent increase in their bills.

But South East Water is raising bills by an average of seven per cent after its customers suffered days of supply disruption which was blamed on Storm Goretti causing burst pipes and power cuts.Water UK said the cash raised from water bills could only be used to fund infrastructure that had been independently determined to be "new, necessary and value for money".

A money-back guarantee meant that customer bills would automatically be refunded by the regulator if improvements were not delivered, it said.

More than two million households currently receive help with their bills through social tariffs, the WaterSure scheme and other affordability measures, and this will expand by an expected extra 300,000 households over the coming year.

Water UK chief executive David Henderson said: "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.

"While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult. That is why we will help around 2.5 million households with average discounts of around 40 per cent off their water bill."

Consumer Council for Water said it had seen a 51 per cent increase in complaints about water companies in 2025, mainly driven by concerns around affordability and upset over the scale of last April's increase.

Chief executive Mike Keil said: "People support investment in improving services but they are impatient for change and need to see compelling evidence their money is being well spent."

Ofwat interim chief executive Chris Walters added: "By April 2027, we are expecting water companies to have installed more than eight million water meters in homes to help customers manage their bills, to have replaced almost 3,000km of piping that will ensure customers experience fewer supply disruptions and reduce sewage spills from storm overflows by 30 per cent from 2024 levels.

"These are just three examples that will help us reach our collective goal of cleaner rivers and seas, more resilient water supplies and better services for customers and the environment.

"However, we also recognise that these bill increases may be difficult for some people. That is why we approved a doubling of company support available for customers who are struggling to pay and now more than two million households are accessing this help."