Latest4m agoWater bills set to rise for many after firms permitted extra funding
Ofwat approves £3.4bn extra water spending, allowing bill rises
England and Wales water companies given green light to raise charges for infrastructure investment, drawing PM's criticism.
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Every item, in order 18
Latest coverage newest 6 of 13 items
What to know
- Ofwat provisionally approved £3.4bn in extra water spending across 13 companies, with five allowed to raise customer bills immediately (2027–2030); final decision due December 2026.
- The rise comes on top of already-approved 36% bill increases by 2030, drawing sharp criticism from PM Burnham and Environment Secretary Eagle who called regulation 'toothless'.
- Funds target pipe replacement, new housing/datacentre support, and 'forever chemicals' removal, but customers are angry at rising bills amid record pollution and supply failures.
- Thames Water—already drowning in £20bn+ debt—is among firms allowed to increase charges, raising stakes for nationalisation risks.
How it unfolded
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new Event Ofwat consultation closes on draft determination
Public consultation period on the draft decision closes on September 24, with Ofwat's final ruling due in December 2026.
- 6 weeks quiet
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Ofwat released a draft determination provisionally approving 13 water companies in England and Wales to charge customers an additional £3.4 billion for infrastructure investment. Five firms—Thames Water, Severn Trent, Southern Water, Wessex Water, and South East Water—are allowed to raise bills between 2027-2030; the other eight would recover costs after 2030.
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Prime Minister Andy Burnham criticized Ofwat's decision, saying it treats customers as a 'blank cheque' at a time when they are struggling with cost of living. He noted customers had paid more for years while pollution incidents reached record levels and pipes continued leaking.
“Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs onto households, they will be challenged.”
Andy Burnham · Newswires ↗ -
Environment Secretary Angela Eagle branded the sector's regulation as 'toothless' and pledged to 'fundamentally reform the water sector', citing years of underinvestment and poor service outcomes.
“I know that households across the country are watching every pound and I share their frustration that years of underinvestment and toothless regulation has led to this.”
Angela Eagle · Newswires ↗ -
Mastodon users questioned whether Ofwat's pledge to claw back funding if targets are missed would work in practice, citing concerns about executive compensation.
“Hard to claw back expenditure on mega-yachts and Bugattis made of emeralds, I'd have thought.”
Bez_Lightyear · Mastodon ↗
What people are saying verbatim
“Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs onto households, they will be challenged.”
Andy Burnham, Prime Minister · Evening Standard ↗
“The truth is customers have been asked to pay more for years, yet serious pollution incidents are at record levels and the pipes are still leaking.”
Andy Burnham, Prime Minister · Evening Standard ↗
“I know that households across the country are watching every pound and I share their frustration that years of underinvestment and toothless regulation has led to this.”
Angela Eagle, Environment Secretary · Evening Standard ↗
“We will track performance to ensure companies are delivering the expected improvements for customers and the environment.”
Helen Campbell, Ofwat executive director for delivery · BBC News ↗
“Hard to claw back expenditure on mega-yachts and Bugattis made of emeralds, I'd have thought. You watch, next news will be Water Bosses Award Selves Massive Pay Rises.”
Bez_Lightyear, Mastodon user · Mastodon ↗