Water bills to increase by average of £123 from April

Water bills will rise by an average of £123 this year in the biggest hit to customer pockets since the industry was privatised 36 years ago, as the public pays to replace ageing infrastructure and cut record sewage pollution.

- Sandra Laville

The price rises for millions of customers in England and Wales from 1 April will take the annual average bill from £480 to £603, and is higher than the £586 predicted by the regulator, Ofwat, in December, because water companies are adding inflation on top of the rises.

The increases raised concerns that households already facing a squeeze on their finances would face further hardship imposed by water companies, which have also been repeatedly criticised for their records on sewage pollution and bumper executive pay.

Customers of Southern Water, the struggling utility that covers parts of southern England including Hampshire to Kent, face a 47% rise to a record £703. Households also face sizeable increases from South West Water, whose 1.8 million customers will pay an average £686 this year, a rise of 32%.

The annual bill for troubled Thames Water will be £639, a 31% increase, and Yorkshire Water customers will pay £602, an average rise of 29%.