𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Kemi Badenoch claimed water companies are being “rewarded for failure”, after it emerged millions of Britons face unexpected bill hikes. Water watchdog Ofwat on Thursday said five suppliers across England and Wales could provisionally raise bills to cover an extra £3.4 billion in spending. This is despite millions of people facing hosepipe bans this summer and billions of litres of water leaking from ageing pipes every day – a problem that can worsen as dry soil causes the ground to shift amid record-breaking heat.

Conservative leader Kemi Badenoch said: “A hike in water bills is the last thing the public need when they’re already struggling with Labour’s cost of living crisis. If we are going to fix the water industry we need stronger regulation to stop water companies racking up huge debts, better management by the regulator, and long-term infrastructure investment. Andy Burnham’s solution is nationalisation. But putting politicians in charge won’t magic up more money, lower bills or improve the infrastructure, it will just leave taxpayers on the hook for billions of pounds.”

Mrs Badenoch added: “Brits thoroughly fed up with poor service and sewage spills from their water providers will be furious about this latest reward for failure.”

Debt-laden Thames Water is one of the firms provisionally allowed to increase customer bills between 2027 and 2030, alongside Severn Trent Water, Southern Water, Wessex Water and South East Water.

Ofwat has already allowed water firms to put up bills by 36% between 2025 and 2030, with eye-watering increases seen in 2025 and another 5.4% on average from April this year.

Clean water campaigner and Undertones star Feargal Sharkey said: “Ofwat accelerates incompetence to new levels of the stratosphere by now demanding and ensuring that water companies’ customers are held ransom, and are forced to continue to pay for their own exploitation, and allowing yet more greed and incompetence to permeate what remains of the environment and our water system.

On water companies, he added: “They perpetuate this myth that it’s the shareholders and the other companies making this investment. No it’s not. We’re being extorted and it’s all being funded directly out of our bills. We’re paying every damn penny of it so why do we need the shareholders anyways?”

The decision means additional bill increases will be allowed for Thames Water – Britain’s biggest water supplier with around 16 million customers – which is on the brink of collapse as it sinks under a £20 billion debt mountain.

Creditors are currently looking to secure a rescue deal to stave off temporary nationalisation by the Government.

South East Water, which is also set to increase bills, is also in the line of fire after a series of supply interruptions left thousands of households, businesses and schools without water.

Southern Water, another company potentially allowed to hike bills, has applied to the Government for a drought order.

This would allow it to ban businesses from activities like washing cars and windows with hosepipes, or filling swimming pools.

Prime Minister Andy Burnham took aim at Ofwat’s draft decision and said customers “cannot be treated as a blank cheque”.

He said: “I understand why people are angry – I am too.

“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.

“None of which is the billpayer’s fault, who should not be treated as a bottomless source of funding for other people’s failures.

“Customers cannot be treated as a blank cheque. Where water companies seek to pass unnecessary costs on to households, they will be challenged.

“Our water industry has clearly not been working for people for far too long. That’s why this Government will be looking at how we can give the public more control and help keep bills as low as possible.”

The draft determination follows a three-month review by Ofwat, with the 13 firms originally putting forward requests for further investment of £4.3 billion.

Ofwat will consult on the draft decision until September 24, with a final verdict due in December.

Amy Fairman, River Action’s head of campaigns, said: “Ofwat waving through yet more water bill hikes is an insult.

“For 30 years, where was the investment in our crumbling water infrastructure? Tens of billions went to investors while essential water and sewage works were neglected. We got leaks, pollution and soaring bills.

“The Prime Minister wants greater public control of water companies. Now is the time to act.”

Cat Hobbs, director at public ownership campaign group We Own it, said: “While private water bosses are paying themselves huge bonuses disguised as ‘signing-on payments’, what do customers get? Hosepipe bans during a heatwave. And now even higher bills.

“If Andy Burnham is serious about taking on the rising costs of living, these proposed water bill increases must be blocked. Privatisation was supposed to bring about private investment. What this shows is that every penny of investment in our water infrastructure comes from our bills, not from investors.

“If water companies cannot invest without raising our bills, they should be allowed to go bust and then taken into public ownership. The public has had enough of the rising bills, service cuts, hosepipe bans and sewage dumping. It is time for water to be taken into public ownership like 90% of the world.”

A spokesman for Water UK, which represents suppliers, said: “This summer’s drought has shown exactly why new investment is so vital. This expenditure will help to safeguard services, unlock new homes and business growth, and replace ageing infrastructure.

“For most customers there will be no immediate impact on bills. Where bills will rise, we recognise any increase is difficult and help is available for anyone struggling to pay.”

Helen Campbell, executive director for delivery at Ofwat, said: “The newly agreed funding will help unlock much-needed new housing development and boost business growth across a range of sectors, as well as improving drinking water quality and the removal of PFAS and forever chemicals.

“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.”