Consumer Scotland has responded to an announcement by Scottish Water that bills will increase by 8.67% from April.
Consumer Scotland Head of Water Gail Walker said:
“This is a steep annual increase in water bills for the second year in a row at a time when many households and businesses are already coping with a range of pressures on budgets.
“We note the increase is within the parameters set by the water regulator and that Scottish Water has, in previous years, held back increases in bills during the cost-of-living crisis to protect consumers.
“We also understand the water industry in Scotland requires investment to repair ageing infrastructure and prepare for the impact of climate change to ensure high standards of water services for both current and future consumers.
“However, this increase highlights ongoing issues of affordability for some consumers and reinforces our concerns over a significant projected rise in water poverty over the next few years.
“Consumer Scotland has recommended greater protection for low-income households by increasing existing discounts and by improving targeting to reach consumers who currently miss out on financial support and this latest increase once again highlights the need for urgent action.”
Background
Domestic water and sewerage charges are set through the Strategic Review of Charges (SRC) which covers a six year period.
The announcement by Scottish Water today is the final increase covered by the previous SRC process. Last year, Scottish Water announced a 9.9% rise.
The current SRC process which will conclude next year could see bills increase in real terms by as much as 26.5% between 2027-2028 and 2032-2033.
To support low-income households Consumer Scotland is recommending both an increase in the threshold of the existing Water Charges Reduction Scheme (WCRS) to limit rises in water poverty in future - as well as consideration of new proposals to target consumers who currently miss out on support.
Consumer Scotland analysis reveals around one in ten Scottish households are currently in water poverty, and around one in 20 are in severe water poverty – facing charges for water and sewerage that exceed 5% of their disposable income.
Consumer Scotland is the levy-funded advocacy body for the water industry in Scotland.