Thames Water bills up 40%: what it means for your wallet

Thames Water customers have faced a painful hit to their household budgets, with bills rising by 40% last year. Now the company has announced a return to profit — but that doesn’t mean relief is coming for you.

Here’s what’s happened and what you need to know.

Why did bills go up so much?

Thames Water, which supplies water to 15 million people across London and the south east, hiked bills dramatically to try to turn around its finances. The company had racked up massive debts (now at £18.5 billion) and was losing money hand over fist — it posted a £1.51 billion loss the year before.

The bill increases were meant to help fund essential repairs to aging water pipes and infrastructure that haven’t been properly maintained for years. Despite the pain of higher bills, the company is still borrowing more money to cover its costs.

What does the £113m profit actually mean?

While Thames Water is now making a profit on paper, don’t be fooled into thinking the company is in good health. The firm admits it needs to keep borrowing heavily just to keep operating, with enough funding to last only until the end of 2026.

Customer complaints jumped by 77% in a year, with most complaints about bills themselves. The company also missed most of its performance targets for customer service.

What happens next?

The incoming Labour government, led by Andy Burnham from Monday, has previously called for Thames Water to be nationalised. A proposed rescue deal involving lenders writing off £9.4 billion of debt was rejected by the government in June.

For now, if you’re a Thames Water customer struggling with higher bills, contact the company to ask about payment plans or support schemes. You can also complain to Ofwat, the water regulator, if you feel the service you’re receiving doesn’t match what you’re paying for.

Keep an eye on the news for any government announcements about the company’s future — it could affect bills significantly.