According to reports, water companies in England are pressing for a 40 per cent increase in water bills to cover the cost of addressing the sewage crisis and climate emergency.

The price hikes are expected to be announced the following year and could increase annual expenses from an average of £450 to £680 by the end of the decade.

It was reported that the majority of companies are requesting pricing increases of an average of 25% between 2025 and 2030. Thames Water reportedly proposes a 20% price increase, while Wessex Water desires a 30% price increase.

The chancellor, Jeremy Hunt, was anticipated to discuss the bill increases during his meeting with Ofwat and other watchdogs on Wednesday morning. He was also scheduled to ask regulators how they were clamping down on companies that may be raising prices to exploit rampant consumer inflation.

The government is concerned that the announcement of bill increases could occur around the next national election.

“Water companies are preparing their business plans for 2025 to 2030,” said an Ofwat spokesperson. As part of these plans, businesses must make substantial investments to enhance customer service and their environmental impact, which need to be improved.

“Companies will need to manage the affordability of their business plans for current and prospective consumers, as well as those who are less able to pay their bills, by conducting customer research to understand their perspectives. This evidence and various other factors will be evaluated as part of our price review procedure.”

The National Infrastructure Commission’s chairman stated that the planned pricing increases are “probably not unrealistic.”

Sir John Armitt stated on BBC Radio 4‘s Today: “By 2050, the Environment Agency and water companies estimate that approximately £50 billion will be required to reduce effluent overflows to an acceptable level.

“We previously estimated that £20 billion will be required to ensure sufficient water supplies by 2050. Significant sums of money are required to restore and make our water and sewage infrastructure suitable for their intended purposes.” Armitt continued, “As a nation, we must determine the quality and extent of infrastructure we require. Then, we must determine if we want to pay for it, if we can afford it, and if we must take care of those who have limited resources and cannot easily handle additional bills.”

In April, water bills in England and Wales increased by the most in nearly two decades, further straining budgets already strained by rising energy and food prices. Since April, the average annual water bill has increased by 7.5% to a new average of £448.

At the time, consumer groups stated that the 8p per day increase could be a “tipping point” for the one in five customers struggling to make ends meet. In addition, they cautioned that some consumers may pay substantially more than the average due to regional differences and personal factors, such as whether or not they have a metre and how much water they use.