20% of customers struggle to pay, as water firms meet 96% of care expectations

One in five water bill payers are struggling to afford their charges, Ofwat’s latest cost of living research has found. This was highlighted by the regulator against the backdrop of rising water bills from 2025, and the new Labour Government’s pro-consumer water policy.

A March 2024 survey of over 2,500 bill payers in England and Wales conduced for Ofwat found 20% to be struggling with water charges, up from 18% in October 2023. 73% of these often choose between expenses to afford bills, and 27% are concerned about the cost of water (scoring it at least eight out of ten on a ten-point scale).

This is part of a wider picture of affordability challenges. 53% said they struggle to pay one or more household bills fairly frequently, up from 50% in October 2023 (see chart). Among those who were most likely to have struggled were those aged 18-34 (73%), tenants (72%), those with children under age 18 in the home (70%), bill payers with long-term illness, health problems or disability (69%), ethnic minority bill payers (67%), full-time carers (67%) and bill payers in London (64%).

More positively, the research found 31% (up from 28%) were aware of financial support provided by water companies, and 9% (up from 6%) had accessed it. 38% (up from 35%) trusted water companies to provide good value for money. The research has been conducted six-monthly since March 2022.

In related news last week, Ofwat reported the industry met 96% of its minimum expectations on customer care, as set out in its Paying Fair guidelines. This ranged from 86% (Portsmouth Water) to 99% (Northumbrian Water, Wessex Water and Yorkshire Water) – excluding expectations that were not applicable to individual companies. Ofwat said it was pleased with companies’ progress since its 2023 assessment, but there is more to do.

Areas of concern were: 

• A continued decline in customer service, as highlighted by CCW’s Water Matters 2024 report. 

• A persistent high level of complaints, the majority relating to billing and charging.

• Non-financial consumer vulnerability – Ofwat is co-hosting a Vulnerability Summit with Ofgem on 10 September. 

Ofwat can take action against water companies who do not meet its consumer expectations under the new customer-focused licence condition introduced in February 2024.