Midland households are bracing for significant financial pressure as Severn Trent announces a ten per cent increase in water bills, set to take effect from April. This substantial rise represents nearly double the average 5.4 per cent increase planned across England and Wales, placing additional strain on already hard-pressed consumers.
Inflation-Busting Increases Amid Investment Plans
The announced increase comes at a time when water companies are preparing to invest approximately £20 billion during the 2026-27 period to secure water supplies and address the critical issue of sewage entering rivers and seas. Water UK, the industry trade body, has confirmed that both the Severn Trent increase and the national average rise substantially exceed current inflation rates.
This development follows Ofwat's approval for water firms to implement bill increases totalling 36 per cent between 2025 and 2030. The majority of this increase – approximately 20 per cent or an average of £86 per household – was front-loaded onto last April's annual adjustment.
Public Anger and Regulatory Response
There has been mounting public frustration regarding the volume of sewage being discharged into waterways, exacerbated by companies raising bills to fund infrastructure improvements after years of underinvestment. The Consumer Council for Water (CCW) has reported a dramatic 51 per cent increase in complaints about water companies during 2025, primarily driven by affordability concerns and dissatisfaction with the scale of last year's price adjustments.
Mike Keil, Chief Executive of CCW, emphasised: "We've seen complaints about the affordability of water bills almost triple in the past year. Further bill rises will compound people's worries. While customers support investment in service improvements, they are impatient for change and require compelling evidence that their money is being well spent."
Company Justification and Customer Support
Severn Trent has defended the increase on its official website, stating: "Customers tell us their priorities include having a reliable water supply fit for the future, protecting our rivers and streams, and keeping bills affordable. Between 2025 and 2030, we're making some of our biggest-ever improvements to our networks. Roughly two-thirds of funding will come from shareholders and lenders, but to fully deliver these improvements, bills will need to increase."
Water UK has clarified that revenue from water bills can only be allocated to infrastructure projects independently verified as "new, necessary and value for money." The organisation also highlighted a money-back guarantee system, whereby customer bills would be automatically refunded by regulators if promised improvements fail to materialise.
Expanding Affordability Measures
Currently, more than two million households receive assistance with their water bills through social tariffs, the WaterSure scheme, and other affordability programmes. This support is expected to expand by an additional 300,000 households over the coming year.
David Henderson, Chief Executive of Water UK, commented: "We understand bill increases are never welcome, but this funding is essential for vital upgrades to secure water supplies, support economic growth, and prevent sewage entering our rivers and seas. While investment is urgently needed, we recognise this increase will be challenging for many. That's why we will help around 2.5 million households – more than ever before – with average discounts of approximately 40% off their water bills."
Environmental Campaigners Voice Concerns
Environmental organisations have expressed strong reservations about the current system. Rob Abrams, Campaign Manager at Surfers Against Sewage, stated: "Nearly a third of our water bills service water company debt and dividend payments while we suffer health impacts from sewage pollution. Water isn't a commodity – it's a necessity. Yet it's being exploited for profit while sewage contaminates our waters. This broken system rewards greed and failure, requiring a complete system reset that prioritises people and planet."
James Wallace, Chief Executive of River Action, added: "When the water sector boasts about 'record investment,' it actually means bill payers, not water companies, are being forced to cover decades of failure. The privatised, pollution-for-profit model has collapsed. Until water companies are owned and governed for public and environmental benefit using long-term patient capital, we will continue to witness regulatory failure and polluted rivers."
Regulatory Commitments and Future Plans
Chris Walters, Interim Chief Executive of Ofwat, outlined regulatory expectations: "By April 2027, we anticipate water companies will have installed over eight million water meters in homes to help customers manage bills, replaced nearly 3,000km of piping to reduce supply disruptions, and decreased sewage spills from storm overflows by 30 per cent from 2024 levels. These measures will contribute to cleaner rivers and seas, more resilient water supplies, and improved services for customers and the environment."
Walters acknowledged the difficulty of bill increases for some households, noting: "We approved a doubling of company support available for customers struggling to pay, and now more than two million households are accessing this assistance."
The CCW has called for stronger consumer protections, with Keil emphasising: "A more robust safety net is essential for those who simply cannot afford these bill increases. Our independent review of water affordability in 2021 clearly indicated that a universal single social tariff would ensure financial support reaches those who need it most. The current postcode lottery created by existing water company social tariffs is unfair and unsustainable as water bills continue to rise."
