Water bills set to surge... despite the hosepipe ban

By SAM MERRIMAN, POLITICAL CORRESPONDENT Published: 00:35, 14 August 2026 | Updated: 00:35, 14 August 2026 Millions of people have been told their water bills will be hiked – in the midst of mass hosepipe bans and with three quarters of the country in drought. Andy Burnham's vow to bring down the cost of living was in tatters yesterday after the water regulator announced bills will rise again for more than 30million people. Ofwat was branded 'toothless' after it granted five water suppliers permission to raise bills above previously agreed levels – despite them losing billions of litres to leaks. The Prime Minister said he was 'angry' at water companies using customers 'as a blank cheque' but has been challenged over what he is going to do about it. Scandal-hit Thames Water was granted permission to hike bills again between 2027 and 2030, along with Southern Water, South East Water, Severn Trent and Wessex Water. Three have imposed hosepipe bans on more than 20million people this summer. Ofwat said it had given suppliers the provisional go-ahead for the unexpected hike in bills to fund £3.4billion-worth of new projects, including infrastructure for housing and data centres. But the water regulator has already allowed suppliers to hike bills by 36 per cent between 2025 and 2030, with eye-watering increases last year and another 5.4 per cent on average bills from April. Water bills are set to surge again as Britain endured its fifth heatwave of the year and Howden reservoir in Derbyshire looked parched The climb will spark further anger at a time when the water industry is under fire for pouring sewage into Britain's rivers, lakes and seas and losing billions of litres of water through faulty pipes. The leaks and sewage flows have been blamed on a sustained under-investment in water infrastructure – while industry fat cats have handed themselves millions in bonuses and dividends. Tory environment spokesman Victoria Atkins last night called on the Prime Minister to set out a 'credible, costed plan' for Britain's water industry rather than simply offering 'more sympathy'. And warning any move from Mr Burnham to nationalise the sector would see bills rise further, she added: 'Labour should set out its plans clearly so bill payers know what they are being asked to pay for and what to expect in return.' Mr Burnham – who has vowed to lead a 'cost of living government' – took aim at Ofwat's decision and said customers 'cannot be treated as a blank cheque'. 'I understand why people are angry – I am too,' the Prime Minister said. '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. 'Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged.' Some 13 water companies applied to increase bills to fund investment of £4.3billion, and Ofwat announced yesterday it had provisionally allowed five to do so for £3.4billion of new projects. The 2.7 million people supplied by Southern Water will see bills rise by £80 over the next two years. Southern – which lost about 37 billion litres of water through leaks last year – has the most expensive bills, with customers paying an average of £759 a year after an 8 per cent rise this year. A sunbather lay on the brown grass in London's Hyde Park as water bosses asked the Government for permission to increase the bills of 30million people Steve Buck, the new chief financial officer of debt-ridden Thames Water, was paid a £1million signing-on fee Thames Water – which Mr Burnham is expected to put into special administration to stave off its collapse as it sinks under £20billion in debt – was also allowed to increase bills for its 16 million customers, as was Severn Trent, which services some 8 million. Thames Water caused fresh outrage this week after it emerged it had paid a £1million signing-on fee to its new chief financial officer, Steve Buck. Meanwhile the 1.4 million people supplied by Wessex Water will see bills rise by £11 over the next two years, while the 2.3 million supplied by South East Water will see a £1 rise. Ofwat will consult on the proposed rises until September 24, with a verdict due in December. A spokesman said: 'We will track performance to ensure companies are delivering the expected improvements for customers and the environment. If they don't, expenditure can be clawed back.' Southern Water and Wessex Water both said they would support customers struggling to pay. Severn Trent and South East Water said they would be reviewing the proposals.