The average household water and sewerage bill in England and Wales will rise by 6pc from April 1, the industry has confirmed, as companies battle to fix sewage spills and leaking pipes.
Millions of homeowners will pay an extra £27 a year, taking typical bills to £473 annually.
Wessex Water and Anglian Water are at the top end of the scale, with average bills set to increase to £548 and £529 respectively, while Northumbrian customers will see the lowest average bills of £422.
In return, industry body Water UK said companies would invest a record £14.4bn to ensure supply security and “significantly reduce” the amount of sewage in rivers and seas.
The rise comes amid ongoing regulatory concern over dividends paid out by water firms to shareholders amid the cost-of-living crisis and public fury about sewage overflows into waters.
Water UK said bills were rising less than they did in the previous financial year, and argued that they would be around £60 higher today if they had kept pace with inflation since 2014.
The money raised from higher water bills would help to build 10 new reservoirs, increase the capacity of dozens of wastewater treatment works and see more than 2,000 kilometres of pipes repaired and replaced, the industry body has said.
Water UK said companies would also increase support for low-income households to its highest level.
The industry group said the funds raised by increased water bills were guaranteed only to fund improvements in water and sewerage systems, and bills would automatically be reduced by the regulator if they were not delivered.
Among the projects set to receive investment over the coming year is the 25km Tideway super sewer, which will divert storm flows away from the River Thames for the first time, would be fully operational later in 2025, reducing sewage pollution into the river by 95pc.
Work will begin on the Havant Thicket reservoir in Hampshire, a joint project between Portsmouth Water and Southern Water and the first reservoir to be built in the UK for more than 30 years.
Wessex Water said it was investing more than £150m on sewage and stormwater capacity at its major water recycling centres near Bath, Bristol and Bournemouth.
