Water bills set to rise for many after firms permitted extra funding

Water companies have been given the green light to increase bills for customers by an extra £3.4bn in coming years to meet increased pressures on infrastructure and the environment.

Nearly a third of the extra funding provisionally approved for 13 water companies in England and Wales is earmarked for making sure water services are maintained.

The rest will be used to meet rising demand from housebuilding and data centres and to address pollutants known as "forever chemicals".

Prime Minister Andy Burnham said the proposal was "real money out of family budgets at a time when they are struggling with the cost of living", and an environmental group described the decision as "an insult".

The regulator, Ofwat, said the extra spending would enable the firms to support growth and better environmental outcomes, and ensure important upgrades were not delayed.

"We will track performance to ensure companies are delivering the expected improvements for customers and the environment," said Helen Campbell, executive director for delivery at Ofwat.

Water companies need approval from the regulator, Ofwat, to raise customers' bills, a process that takes place every five years to set spending budgets for the years ahead.

This decision to allow increased charges comes on top of already-agreed bill rises that were negotiated with the water companies in 2024.