Labour chancellor Rachel Reeves has criticized the planned 21% increase in water bills by 2030, describing it as a “bitter pill” for Brits to swallow.
According to draft proposals released today by regulator Ofwat, water firms will be permitted to raise bills by an average of £19 per year, or £94 over five years, up to 2030.
“It’s clearly a bitter pill for people who are seeing today’s announcements about higher water bills,” said Reeves.
“This reflects 14 years of failure from the Conservatives to drive investment to reduce pollution and to ensure that families are not struggling the way that they have been with the cost-of-living crisis.”
Despite coming at a time of public outrage over escalating sewage spills and water contamination incidents, the price hikes fall significantly short of what the water companies wanted.
Thames Water, for instance, will only be allowed to raise water prices by £99 over the next five years, barely half of the £191 it was seeking.
In a sign that this compromise will satisfy no one, campaigners and the Liberal Democrats have robustly rubbished the price hikes as unfair, disgraceful and insulting.
Industry group Water UK was equally outraged for the opposite reason, calling the decision to not meet water companies’ demands “an unrealistic and unfair decision from Ofwat, and our economy and environment will pay the price”.