Water bills ‘rise twice as fast as pay’

A study commissioned by Unison showed that bills had trebled since water privatisation in 1989, well above rises in the inflation rate.

The research, conducted by the New Policy Institute, also found that water firms were making “huge profits”.

Unison called on the Government to launch a “root and branch review” of the industry to make sure it is being run in the public interest.

Dave Prentis, Unison’s general secretary said: “This private monopoly is the worst of both worlds. Since privatisation, private equity firms have swooped in to grab a lucrative slice of the water industry pie, but households, taxpayers and employees are losing out.”

The report said almost a third of an average household water bill goes on profit, compared with nine per cent in the energy sector.

Water bills have soared by 64 per cent in the past 10 years compared with 28 per cent for average earnings.