The average household water and sewerage bill in England and Wales for 2018-19 is set to rise by 2 per cent (£9) to £405 as the water sector commits to cutting leakage and improving the environment.
Water UK said more than £8 billion will be invested in the water industry this year, while bills will increase by less than inflation.
The investment will go towards a £44 billion spending commitment over the five years to 2020, which will cut 370 million litres a day leaking from pipes, ensure nearly 5,000 fewer properties will be flooded with sewer water and 50 beaches are cleaner.
Water UK said the change to average bills was within the context of an overall cut of 5 per cent in real terms between 2015 and 2020 as part of five-year plans confirmed by Ofwat in 2014.
It suggests water companies are also on track to deliver on a 5-year commitment to provide financial support to an additional one million people (459,000 households) by 2020, with all companies having social tariffs in place to provide reduced water bills for customers who struggle to pay.
Michael Roberts, chief executive of Water UK, said: “We know that households are under financial pressure in a number of ways. Even though the cost of water and sewerage is much less than other services, it all adds up, which is why water companies are doing everything they can to keep bills as low as possible while keeping up huge levels of investment.
“Our customers deserve a world class service, and we’ll continue to provide it – giving people some of the best water in the world, cutting leaks, improving the environment and helping customers who struggle to pay their bills.”
Responding to the announcement, Tony Smith, chief executive of the Consumer Council for Water, said: “Most water companies are reducing their charges before inflation is added to bills which has softened the blow, but this will still be an unwelcome increase for millions of customers that are facing other rising costs.
“Water companies now have a range of schemes that can ease the pressure on customers that are already feeling the pinch. But for some of us, simply switching to a water meter can be the most effective way to save money.”