Average water bills in England and Wales are to rise by 36 per cent over the next five years, the regulator Ofwat has said.
The typical increase is equivalent to an extra £31 per year.
It is less than the 40 per cent rise that water companies had demanded to deal with environmental targets, inflation and the growing cost of debt — but more than the 21 per cent included in the regulator’s draft documents in July.
• Inflation rises to highest level since March
Steve Reed, the environment secretary, blamed 14 years of Conservative rule for the state of the water industry.
“Under the Conservatives, our sewage system crumbled,” Reed said. “They irresponsibly let water companies divert customers’ money to line the pockets