Andy Burnham has criticised water companies after Ofwat approved fresh increases in customer bills, with the Prime Minister accusing firms of treating customers like a “blank cheque”. The approval was announced on Thursday, allowing five suppliers – Severn Trent, Southern Water, Thames Water, Wessex Water and South East Water – to hike bills above levels previously agreed within the regular pricing system.
Burnham: Customers should not be a 'bottomless source of funding'
Mr Burnham said: “I understand why people are angry – I am too. 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.” He added: “None of which is the bill-payers’ fault, who should not be treated as a bottomless source of funding for other people’s failures.”
“Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged,” Burnham said. “Our water industry has clearly not been working for people for far too long. That’s why this Government will be looking at how we can give the public more control and help keep bills as low as possible.”
Bill increases by supplier
Telegraph analysis shows the biggest bill increase will be for Southern Water customers, who will pay £43 more in 2027 and another £37 in 2029. Thames Water will raise bills by £3 in 2027, rising to £5 in 2029. Severn Trent will raise prices by £3 and then £5, and Wessex Water by £4 and £7. South East Water will raise bills by £1 in 2029.
Government and committee responses
Angela Eagle, the Environment Secretary, said: “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.” Alistair Carmichael, the head of Parliament’s environment committee, said: “Britain’s hard-pressed water customers all know that this is not the first time bills have been put up in the name of better service. The truth is however, that these improvements have been hard to see and it is the job of the Government to ensure that the money paid by bill-payers actually goes towards improving services.”
A spokesman for Water UK said the drought showed the new investments were “vital”, adding: “This expenditure will help to safeguard services, unlock new homes and business growth, and replace ageing infrastructure. For most customers there will be no immediate impact on bills. Where bills will rise, we recognise any increase is difficult and help is available for anyone struggling to pay.”
