Water bill rise causes concern at consumer group

20/02/2009

Water bills in the UK are to increase by 4.1 per cent in April - potentially stretching the budgets of many households.

The hike was agreed by water providers and the industry regulator Ofwat in 2004.

Prices are pre-set in this way in order to help suppliers make their own budgets - which must pay for repairs and maintenance work.

However, analysis from the Consumer Council for Water (CCW) suggests that many people will be put under financial strain by the change, with the UK in recession and unemployment on the rise.

CCW chair Dame Yve Buckland said: "Any price increase will be a concern for customers in the current economic climate, and we recognise that many customers may struggle to keep up with these bill rises.

"In 2004 [the government] predicted that more than one in ten customers would struggle to afford the prices being announced today, because, for these households, water bills would make up more than three percent of income after tax."

The rise in water costs will bring the average annual bill up to £342 per year.

Tags; Budgeting Advice, Young Family Finances, Retirement Money Problems,

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