Water price hikes explained
From today, UK water bills go up – significantly.
In some areas, household bills will rise by as much as 47%.
For businesses, the wholesale price of water is increasing by an average of 42% over the next five years, with the biggest hike kicking in this year. This marks the most significant increase since water was privatised over 30 years ago.
It’s no surprise that many homeowners are angry – water companies are under scrutiny, the cost of living remains high, and now, water bills are piling on the pressure.
But there are things we can do.
For homeowners, cutting back on usage is the quickest way to reduce your bill – especially if you’re on a water meter.
At Watergate, we created a free water impact calculator in partnership with water efficiency experts Waterwise to help people learn more about their water use and how to save. For example, a four-person household could save up to £850 annually on water and energy bills by following all the recommended water saving actions.
The three most effective actions?
- Keep showers to four minutes or less
- Install water-saving devices like low-flow heads and tap aerators
- Use a smart leak detector with an automatic shut-off valve (like Watergate Sonic) to spot and stop leaks before they cause damage
As a bonus, you’ll also save on your energy bill by heating less water.
Not on a meter yet? You’re legally entitled to have one installed for free – usually within 3–6 months. As a rule of thumb, if your home has more bedrooms than people, switching to a meter could save you money.
Businesses hit hard
Businesses are being hit hard too. A small café or pub might be facing thousands of pounds in extra charges. Large landlords or accommodation providers could be looking at tens of thousands.
Thankfully, most businesses are already metered – so water-saving measures can have an immediate financial impact. And unlike households, they can shop around for a better deal.
While frustration with water companies is understandable – especially given the ongoing issue of leaks – it’s worth noting that when adjusted for inflation, water bills have actually fallen in real terms almost every year since 2010, according to Water UK. But the era of cheap water is ending.
The industry must now invest heavily in ageing infrastructure and innovation. Rising prices are a symptom of a deeper challenge: climate change, population growth, and chronic underinvestment have brought us to a tipping point.
The Environment Agency predicts that within 10 years, demand for water will outstrip supply in the UK.
That’s why reducing leaks and waste matters more than ever – not just to cut bills, but to protect future supply.
In the meantime, we all face the short-term reality: higher water bills are here – and likely to keep coming.
It’s time to get serious about water.
Gareth is a self-confessed ‘water geek’ and sits on a number of industry water efficiency working groups. He is Commercial & Communications Director at Watergate.