April 1 is nicknamed National Prike Hike Day in the UK, as key essentials use the day to hike up their costs ahead of the new financial year. This year Britons will see their council tax, water bill and broadband all go up, among several other essential items, despite an ongoing cost of living crisis.
TV & Broadband:
Customers on BT, EE, Plusnet and Vodafone will all be charged an extra 7.9 percent from April. These companies pin their prices to December's inflation figure plus 3.9 percent - which is common practice in the industry.
Virgin Media and O2 are upping prices by 8.8 percent, based on the retail price index from January plus 3.9 percent.
Sky is also imposing price hikes, handing most Sky TV and broadband customers an average increase of 6.7 percent.
Council tax:
Cash-strapped councils are trying to battle bankruptcy by increasing bills by at least 2.99 percent. This goes up to 4.99 percent if the council is responsible for social care. Councils, many of which are in a state of financial crisis, have already started to cut services such as parks, leisure facilities, arts and culture.
Birmingham City Council, which has declared effective bankruptcy, has been permitted to hike council tax by an astonishing 21 percent over two years.
Meanwhile, people in Scotland will see their council tax frozen.
TV licences:
The annual cost of a standard colour TV licence will rise from £159 to £169.50 from 1 April - an increase of £10.50.
The cost of a TV licence for a black and white set – still watched by more than 4,000 UK households – will increase from £53.50 to £57 from the start of April.
Water:
Despite a record 105 percent rise in raw sewage discharges in the past year, water companies will again by raising water bills. The average household water and sewerage bill in England and Wales will go up by an average of 6 percent from April. Water UK said the increases would leave households with an average annual bill of £473. Water companies have pledged to invest the money to cut leaks, stop sewage spills and increase reservoir capacity.
Train fares:
Rail fares will rise by 8.7 percent in April for those in Scotland, while England and Wales have already seen fares increase by 4.9 percent earlier this month.
Stamps:
The Royal Mail will raise the price of stamps again, increasing the price of a first class and second class stamp by 10p to £1.35 and 85p respectively.
US telecommunications giant AT&T says it has started notifying millions of customers about the theft of personal data recently discovered online.
The company said Saturday that a dataset found on the “dark web” contains information such as social security numbers for about 7.6 million current AT&T account holders and 65.4 million former account holders.
AT&T said it had already reset the passcodes of current users and will be communicating with account holders whose personal information was compromised.
It is not known if the data “originated from AT&T or one of its vendors”, the company said in a statement.
The compromised data is from 2019 or earlier and does not appear to include financial information or call history, it said.
In addition to passcodes and social security numbers, it may include email and mailing addresses, phone numbers and birth dates.
It’s understood the data surfaced on a hacking forum nearly two weeks ago.
An AT&T spokesperson didn’t immediately return a request for comment Saturday.
It is not the first crisis this year for the Dallas-based company. An outage in February temporarily knocked out mobile phone service for thousands of US users.
AT&T at the time blamed the incident on a technical coding error, not a malicious attack.
Council tax, road tax, broadband, mobile, water and even stamps are all about to sharply jump in price with people urged to check for savings by comparing companies and investigating if they are entitled to any discounts.
Here are all the changes expected on or around April 1:
Council Tax up £106 on average
The average annual council tax bill will rise by £106 this year as local authorities seek to maximise revenue to pay for struggling frontline services.
The bill for an average Band D property will increase by 5 per cent to £2,171, according to statistics released by the Department for Levelling Up, Housing and Communities.
Council taxes are rising by various amounts in Wales, from around 5 per cent in Torfaen to more than 11 per cent in Pembrokeshire, but the SNP has promised to freeze council tax across Scotland until 2025.
Water bills up £27 a year
The average household water and sewerage bill in England and Wales will rise by 6 per cent to £473 a year from April 1.
Wessex Water and Anglian Water are at the top end of the scale, with average bills set to increase to £548 and £529 respectively, while Northumbrian customers will see the lowest average bills of £422.
(Getty Images/iStockphoto)
Water UK said the funds raised by increased water bills were guaranteed only to fund improvements in water and sewerage systems, and bills would automatically be reduced by the regulator if they were not delivered.
Water UK chief executive David Henderson said: “Next year will see record levels of investment from water companies to secure the security of our water supply in the future and significantly reduce the amount of sewage in rivers and seas.”
He said anyone with worries should contact their water company and assured customers that firms would never cut anyone off or “make them use a prepayment meter”.
Broadband bills up 7.9%
Most broadband deals and mobile phone contracts will rise by a “completely unacceptable” 7.9 per cent on April 1.
Many of the biggest broadband firms – such as BT, EE, Plusnet, Shell Energy, TalkTalk, Virgin Media and Vodafone – raise prices every April in line with the Consumer Price Index (CPI) or the Retail Price Index (RPI) – announced as February as 4 per cent and 4.9 per cent respectively – plus an additional 3 per cent, 3.7 per cent or 3.9 per cent.
Uswitch calculated that the increase would cost the individual consumer around £27.19 more a year for broadband and £24.23 for mobile bills on average.
A new round of inflation-linked broadband price rises is expected in April (PA)
Richard Neudegg, director of regulation at Uswitch.com, said: “There is hope on the horizon, with Ofcom currently weighing up a new ban on inflation-linked and percentage-based price hikes.
“All mobile and broadband customers should check to see if they are in or out of contract, and consider switching to a cheaper deal as soon as they are able to prevent overpaying.
“This is especially true for anyone who hasn’t moved in the past 18 or 24 months as you’re very likely to be at or nearing the end of your contract and significantly cheaper options will be out there.
Similar to its broadband and mobile contracts, EE is increasing the cost of its subscription television service by 7.9%. EE TV, previously known as BT TV, allows customers to access free-to-air channels as well as premium channels such as TNT Sports, previously BT Sport.
Our research shows that switching providers if you're out of contract can slash broadband, pay TV and mobile bills by up to £187
Natalie Hitchens, Which?
Virgin Media’s 8.8 per cent increase is also extended to its subscription television service and Sky will increase prices by an average of 6.7 per cent for television customers from April 1.
TV Licence to increase by £10.50
Separately, the annual cost of a TV Licence will rise to £169.50 from April 1, up from £159, which viewers need to pay to watch or record live TV shows on any channel, regardless of the device used. This includes watching anything via BBC iPlayer.
Road tax to increase by at least £10 a year
The government confirmed in the Autumn Statement that vehicle excise duty, or road tax, will rise in line with the RPI from April 1.
For cars registered after April 1 2017, it means the tax is likely to rise from its current level of £180 per year to approximately £190 per year. However, older vehicles or vehicles which emit higher levels of carbon dioxide will pay more.
Even stamps will rise by 10p
The price of stamps will increase in April 2, first-class stamps by 10p to £1.35 and second-class stamps by 10p to 85p.
NHS Dental charges to increase by 4%
English patients will be hit by an increase of 4 per cent, which means a standard check-up will cost £1 more, at £26.80.
NHS Dental services are free for all children under 19 and can be free for pregnant people or if you are on certain benefits.
...But at least energy bills fall as Ofgem lowers price cap
On a more positive note, the average household energy bill is to fall to its lowest point in two years from April 1 after Ofgem lowered its price cap in response to wholesale prices.
The regulator is dropping its price cap by 12.3 per cent from the current £1,928 for a typical dual fuel household in England, Scotland and Wales to £1,690, a decrease of £238 over the course of a year or around £20 a month.
Natalie Hitchins, Which? head of home products and services, said: “From April 1, millions of people will face price hikes, including on broadband, mobile, water and council tax bills – and these come just a few weeks after train ticket prices increased for many.
“However, there are ways to cut costs in the face of these price rises and keep your household bills as low as possible.
“Our research shows that switching providers if you’re out of contract can slash broadband, pay TV and mobile bills by up to £187. It’s also worth checking if you’re eligible for any council tax reductions or exemptions and could save money by installing a water meter.”
A Treasury spokesperson said: “Our decisive action has meant that inflation has more than halved to 3.4% and is forecast to fall back to the two percent target within the next three months – a full year ahead of expectations. That is protecting households around the country from higher costs.
“Thanks to changes at autumn statement and a second national insurance tax cut in April, we’re putting £900 a year back into the average worker’s pocket. This is on top of one of the largest cost of living support packages anywhere in Europe over recent years, worth an average of £3,800 per UK household between 2022 and 2025”.
Post Office bosses have been hit with a string of formal complaints over their conduct, The Telegraph can reveal, with nine grievances raised about executives under the leadership of chief executive Nick Read.
Data released under Freedom of Information laws shows that nine formal grievances have been filed against members of the Post Office’s group executive, its most senior leaders, since Mr Read took charge in 2019.
It comes as the Post Office’s senior ranks face more turbulence as Mr Read’s deputy leaves the taxpayer-owned company.
The Telegraph has learned that Owen Woodley, the Post Office’s deputy chief executive, will leave this summer after less than a year in the role.
Mr Read announced the departure to staff last week. He said Mr Woodley, who has been at the Post Office for eight years and was made deputy chief last July, had “personal plans for the future”.
There is no suggestion Mr Woodley’s departure is related to any complaint.
News of the grievances reported against executives comes as the Post Office grapples with the Horizon IT scandal that saw hundreds of innocent sub-postmasters prosecuted, and claims of a toxic culture including an investigation against Mr Read himself.
Last month it emerged that Jane Davies, the Post Office’s former human resources director, complained about Mr Read’s behaviour under a separate whistleblowing process, which triggered an external investigation due to report back shortly.
Henry Staunton, who was fired by Business Secretary Kemi Badenoch as the Post Office’s chairman in January, claimed earlier this month that Mr Read had overseen a culture of misogyny. Mr Read said that he absolutely refutes the allegations that have been made against him.
The Post Office’s grievances policy says staff may complain around issues of health and safety or behaviour in cases where raising the issue informally with a manager has been unsuccessful, or if they are complaining about their direct manager.
The nature of the grievances against executives revealed by the Freedom of Information request is not clear, and it is understood that they have all been resolved.
A Post Office spokesman said: “As part of our work to change the culture of Post Office, we encourage any person with a complaint to come forward. All complaints are investigated thoroughly, fairly and appropriately, in order to ensure that the mistakes of the past will not be repeated.”
The Post Office website lists five individuals who comprise the group executive, although this has been cut down from nine at the start of the year, and the company’s senior ranks have been shuffled since September 2019, when Mr Read was made chief executive.
Mr Staunton was fired by Ms Badenoch as the Post Office's chairman in January
Credit: Peter Nicholls/Getty Images Europe
Ms Badenoch addressed Post Office staff on Wednesday, saying its board had provided “strong leadership” over recent months and provided a “unit of purpose”.
She said that postmasters had been “badly let down in the past”.
Mr Read emailed staff last week to inform them about Mr Woodley’s resignation. He said Mr Woodley had told him late last year that he had decided to resign and that he wanted to “do something different in life”.
“His support for me and the business through this time has been unwavering and he has delivered a great deal for us,” Mr Read wrote.
There is no suggestion Mr Woodley’s departure is related to any complaint.
The Post Office spokesman said: “Owen Woodley leaves us at the end of August. He has made a considerable contribution to the organisation and we are all very grateful for this. He has been planning to step back from his role to pursue personal projects for some time, and our plans to ensure a smooth handover are well underway.”
Ms Badenoch has been in a public row with Mr Staunton since he claimed in February that the Government sought to delay compensation payouts to sub-postmasters, who were wrongfully prosecuted for shortfalls caused by errors in the Post Office Horizon software developed by Fujitsu.
UK inflation may have fallen to a two-and-a-half-year low of 3.4%, but there are an awful lot of things that are going up in price on 1 April, with some chunky rises about to take effect.
Council tax bills will increase for millions of households, and a swathe of other bills – from car tax and stamps to NHS dental charges – will become more expensive.
Here we round up what’s happening – and what you may be able to do about it.
Council tax
Official data shows the average increase for 2024-25 pushed through by local authorities in England is just over 5%, said to be the largest increase in cash terms since 2003-04.
The charge for a typical band D property in England averages £2,065. A 5.1% rise adds a further £106. Of course, that depends on where you live and your property’s band. In Nottingham, a band D resident will pay £2,529 a year from April, to give a figure of £2,171.
Additionally, four English councils – Birmingham, Slough, Thurrock and Woking – have been granted special permission to put through increases of up to 10% this year in light of what the government calls their “significant financial failure,” MoneySavingExpert.com says.
Birmingham is imposing the largest cash-terms increase of any council, with band D bills going up by £163, followed by Slough (£144), Thurrock (£126), Gateshead (£103) and Nottingham (£102), the TaxPayers’ Alliance says.
In Wales, the average band D rise is £145, or 7.7%, but some households have been hit with substantially more.
In Scotland, council tax is frozen for 2024-25 to support those “struggling in the face of rising prices”, with 2.5m households likely to benefit.
What can you do about it? Check if you are eligible for a council tax discountor reduction, which can range from 25% to 100%. Those eligible can include full-time students, people on low incomes or benefits, and some who live alone or are single parents.
There are various rules. For example, in England there’s a 25% single person discount if you are the only adult in your home. If everyone who lives in the property is – to use the jargon – “disregarded”, or not counted for tax purposes, there’s still a bill, but you will get a 50% discount. If everyone in your home is a student, or severely mentally impaired, you won’t pay any council tax.
Meanwhile, if your income drops, or you find yourself out of work, you may be able to apply for a reduction, which can be up to 100%, though each council has its own rules. Citizens Advice has a guide on how it all works.
After last year’s “mid-contract” price increases of up to 17%, many broadband customers are facing a further 8% increase at around this time – typically adding about £30 a year to many people’s costs.
Although they vary, BT/EE, Vodafone and Three are all putting up bills by an average of 7.9%. At TalkTalk it’s 7.7%. And Virgin Media, which merged with O2 in 2021, is pushing through rise of up to 8.8%.
It’s a similar story for mobile customers, who face a typical increase of about £20 a year. EE and Tesco Mobile (non-Clubcard) customers face a price rise of 7.9%. At O2 Mobile it’s 8.8%.
What can you do about it? If you are out of contract, either switch to a new provider or negotiate a new, cheaper contract with your existing supplier. “If you stay with your existing provider, check for the cheapest deal elsewhere, then contact them, tell them you’re thinking of leaving, and ask them to match the price,” says Sarah Coles, head of personal finance at the investment platform Hargreaves Lansdown.
If you are paying more than about £27 a month for fast (67Mbps) home broadband, you are probably overpaying. Meanwhile, mobile customers who are out of contract will probably want to look for a cheaper sim-only deal.
Vehicle excise duty
The annual cost of taxing your car or van is rising in line with inflation from 1 April. For most drivers of new and older cars, the annual cost of VED, or car tax as it is better known, will go up by between £5 and £20. Buyers of new vehicles with the highest emissions are scheduled to pay £140 more in the first year, from April. If your existing car was first registered on or after 1 April 2017, your annual car tax will increase by £10 to £190.
For cars first registered after March 2001 and before April 2017, your bill will depend on its CO2 emissions. A typical family petrol car emitting 172g of CO2/km will pay £305 a year – up £15 on last year. The charge for a smaller band D car rises from £150 a year to £160.
What can you do about it? For some, it could mean buying a smaller model that qualifies for lower VED – these will be mostly pre-2017 models. Or you could go carless – clearly not something that is open to everyone, but a move that can result in huge savings.
TV licence
From 1 April the standard colour TV licence will cost an extra £10.50 – a heady £169.50. If you are one of the 4,000 or so households who still watch a black-and-white TV, your licence will rise by £3.50 to £57.
If you are wondering if you need a licence, the answer is probably yes. If you watch any live TV on Sky, BBC or via the internet, or anything on BBC iPlayer, you need one. If you only watch on-demand services such as Netflix, Disney+ and Amazon Prime, you don’t.
What can you do about it? Check whether you, or a loved one, are entitled to a free or reduced-fee licence. All over-75s used to be able to get one free, but this was scrapped in 2020. Now you can only get one if you (as the licence-holder) are 75-plus and you, or your partner living at the same address, receive pension credit. You may be entitled to a reduced-fee licence if you live in a residential care home, supported housing or sheltered accommodation.
Stamps
First-class stamp prices will rise by an inflation-busting 8% for standard-size letters from Tuesday 2 April. First-class rises from £1.25 to £1.35, second-class by a larger 13% – up from 75p to 85p.
What can you do about it? Some people stockpile stamps to beat price rises, so do so now before the increase takes effect.
NHS dental charges
From 1 April, charges will increase in England by 4%, lifting the cost of a “band 1” treatment, such as a check-up, from £25.80 to £26.80. A band 2 filling rises from £70.70 to £73.50, and band 3 treatments, such as crowns and dentures, from £306.80 to £319.10.
What can you do about it? Check whether you have to pay – you may be entitled to free care. The NHS website outlines who is eligible. For example, you do not have to pay if you are under 18, or under 19 and in full-time education; if you are pregnant, or have had a baby in the last 12 months; or if you or your partner receive certain benefits, or you are under 20 and the dependant of someone who gets those benefits.
Water bills
In England and Wales, the average increase is a little over 6%, taking a typical annual bill from £445 to £473 for 2024-25, according to industry body Water UK.
However, your actual bills will vary, depending on where you live and how you are billed. In the Anglian Water area, they will rise by £40 (8%) to £529 a year. In the Southern Water area it will be £51 (12%) for a total of £479. At Hafren Dyfrdwy in Wales, it’s 20%, or £71, to £433. At Wessex Water, it’s £548.
In Scotland, an average increase of £35.95 a year (8.8%) will take effect for 2024-25.
What can you do about it? In many cases, the best move for those still paying the standard charge is to have a free water meter installed, meaning you will only pay for what you use. Many households will save £100-plus by doing this. If you live in a flat, or similar, and a meter can’t be installed, you can ask for an “assessed charge bill” that sets your bill according to the number of people in your home.
Meanwhile, about 2m households now receive some sort of financial support with their bills, which can include reduced tariffs, payment breaks and “debt forgiveness,” says Water UK.
If you are struggling, talk to your water company. The Water UK and Ofwat websites outline some of the help available.
29 March 2024, 18:51 | Updated: 29 March 2024, 18:57
Drivers have been stuck in 20-mile-long queues.
Picture:
Alamy
Holidaymakers setting off for the bank holiday weekend have been hit by serious delays on the roads amid reports of 20-mile queues on some major motorways.
Drivers had been warned ahead of Friday that some 2.6 million drivers journeys were expected on the first day of the bank holiday weekend.
Queues between 15 to 20 miles long were seen on the M4 and M5 interchange near Bristol, adding around 45 minutes to journey times.
The western side of the M25 had reports of 40-minute queues as the road was described as a “lot worse than normal”.
RAC spokesman Simon Williams said: “Everyone's heading to Devon and Cornwall, that's the attraction, and there's been a bit of better weather.
“It's causing some pretty horrendous queues.”
It comes after the Port of Dover reported queues of up to two hours earlier in the day, which have since fallen to around 90 minutes.
One driver told the MailOnline: “It took me five hours to get from the Isle of Man to our Airbnb in London yesterday - and it's going to take longer to get out of this queue!
“It's a complete nightmare. You'd think they'd changed something with the systems but no, they just can't cope. Unbelievable.”
Heavy congestion was reported on major motorways.
Picture:
Getty
Passengers heading to the Port of Dover had also been warned processing might take longer than usual because French authorities are conducting tighter security checks after the attack in Moscow last week.
Photos from Dover showed long tailbacks as drivers queued to board ferries to the continent for Easter getaways.
"Blustery scattered showers" on Friday are expected to turn "heavy and thundery at times, mainly in the south and west", according to the Met Office.
Traffic management in Dover for cars, coaches and lorries as they queue to enter the Port of Dover.
Picture:
Alamy
Traffic on the A20 waiting to enter the Port of Dover in Kent to catch their ferries as the getaway continues for the Easter weekend. Picture date: Friday March 29, 2024.
Picture:
Alamy
Passengers queue for ferries at the Port of Dover in Kent as the getaway continues for the Easter weekend. Picture date: Friday March 29, 2024.
Picture:
Alamy
P&O Ferries said on Friday morning that "there are currently queues in the Port of Dover."
"Please don't worry if you miss your sailing, we'll get you on the next available ship once you're through check-in," the company added.
Ferry company DFDS said that all Dover-France services "are currently operating with delays due to the earlier strong winds in the Channel.
"Please check-in as normal, we will transfer all passengers onto the first available sailing on arrival. Apologies for any inconvenience caused."
Lorries on the A20 waiting to enter the Port of Dover in Kent to catch their ferries as the getaway continues for the Easter weekend. Picture date: Friday March 29, 2024.
Picture:
Alamy
It comes as around 2.6 million drivers hit the roads for Good Friday getaways, with journeys to take twice as long as usual, as the bank holiday coincides with the start of a two-week holiday for schools.
The first drivers to depart on their Easter getaways were hit by travel chaos on Thursday after Storm Nelson arrived.
Travel chaos ensued after Storm Nelson hit on Thursday.
Picture:
Alamy
Drivers were advised to set off as early as possible or wait until later in the day to make their Good Friday journeys, as peak times were predicted to hit between 11am and 3pm.
The RAC and transport analysis company Inrix commissioned a survey which suggested 2.6 million leisure journeys by car will be made on the bank holiday.
One of the busiest roads was expected to be the western section of the M25 between the M23 for Gatwick Airport and the M1 for Hertfordshire.
Network Rail urged train passengers to check their journey details before they travel because some major routes will be closed due to engineering work.
The West Coast Main Line between London Euston and Milton Keynes will be shut for four days from Good Friday.
Storm Nelson saw gusts of 50mph on Thursday.
Picture:
Alamy
More than 14 million journeys are expected to take place over the course of the four-day weekend.
Deputy chief meteorologist Dan Harris said of the upcoming weather: "The weather is expected to gradually improve following the widely unsettled spell of the past few days, with a fairly typical mix of spring-like weather across the UK.
"There will be some sunshine, and it will feel increasingly warm for most as the winds become lighter.
"However, the west and especially south west is likely to see passing showers too, which could be quite heavy and frequent at times.
"Eastern coastal districts are also likely to feel increasingly cold as an onshore breeze develops, threatening persistent low cloud in some areas too."
Millions of people are expected to travel on Good Friday as the Easter getaway gets into full swing.
A record number of people are planning to fly this weekend, and 2.6 million car journeys are expected on Friday.
There are reports of long queues at Dover on Friday morning as vehicles face a two-hour wait to be processed.
Stormy weather that contributed to delays yesterday evening is expected to ease, but dozens of flood warnings and alerts remain in place in England.
Some 11 million people in the UK are planning an overnight trip this Easter, according to the tourist board Visit England.
Drivers have been warned journeys could take twice as long on some routes.
A survey by motoring company RAC and transport analysis company Inrix suggests 14 million trips by road could be made across the weekend.
A weather system dubbed Storm Nelson by Spanish forecasters brought wet and windy conditions to Northern Ireland and the south of England on Thursday, with several rail operators and airports reporting disruption.
PA Media
However, conditions are expected to improve on Good Friday and into the rest of the Easter weekend, according to BBC Weather presenter Chris Fawkes.
The UK is set to see a mix of sunshine and showers, with the potential for some heavy downpours and hail, though temperatures will remain close to average.
While there are no weather warnings in place, 35 flood warnings and 183 flood alerts have been issued in England by the Environment Agency.
Throughout Saturday and Sunday, some showers are expected but are unlikely to be as widespread.
Met Office meteorologist Dan Harris said most could expect a "fairly typical mix of spring-like weather"- however, more persistent rain could return to England and Wales on Monday.
Rail, air and sea
Airports and airlines are expecting "record-breaking" passenger numbers for this time of year as holidaymakers jet off abroad for the weekend.
Manchester Airport said it was preparing for about 320,000 passengers this weekend, 8% more than the equivalent last year.
Glasgow Airport said it would have extra staff in place during "three exceptionally busy weekends ahead".
Planned engineering works could cause disruption for some rail passengers, including at London Euston - one of the UK's busiest railway stations - which will be largely closed between Good Friday and Easter Monday.
Trains between London and East Anglia, and services to and from the capital via the West Coast Main Line are expected to be impacted by works, Network Rail warned.
PA Media
At Dover, there are reports of long queues of vehicles waiting to board ferries. Officials said the current border processing time for tourists is about 2 hours.
French authorities at Dover have stepped up border checks after the country's terror threat level was raised in the aftermath of the Moscow concert hall attack.
Drivers are being advised to plan ahead and leave extra time.
At peak times over the next few days, Dover has told coach operators that even with the right resources in place at the border, wait times could be up to 2.5 hours.
Eurotunnel told the BBC it was putting on extra shuttles and staff to cope with expected high numbers.
If you are reading this page and can't see the form you will need to visit the mobile version of the BBC website to submit your question or comment or you can email us at HaveYourSay@bbc.co.uk. Please include your name, age and location with any submission.
Chief executive Chris Weston, meanwhile, refused to rule out bill increases of up to 40 per cent for customers, as the firm struggles with increasing debts and huge interest payments.
Labour urged the government and regulators to “do everything in their power to stabilise” Thames Water, with Jeremy Hunt saying that the Treasury will monitor the situation “very carefully”.
While Mr Weston said that the company would be able to cover its operating costs until next year, he admitted there was a “possibility” of the firm going into special administration if extra money is not invested.
Jeremy Hunt said the treasury will be monitoring Thames Water ‘very carefully'
When asked on Sky News if bills could be hiked to fill the gap, Mr Weston replied: “I don’t think we have been at all secretive about that.
“But the plans that we have put forward – which are very much in accordance with what customers are asking us to do – require an investment of around £20bn in that 2025-2030 period, and that would result in a bill (increase) of around 40 per cent.”
Meanwhile, the GMB union accused shareholders of “essentially blackmailing customers and Ofwat” ahead of a meeting with Thames Water this morning.
GMB national officer Gary Carter said: “Assets and infrastructure are falling apart – instead of putting the money in to fix it, shareholders are refusing to pay a penny unless bills are allowed to rocket.
“Holding bill payers to ransom for costs after years of underinvestment is completely unacceptable.
Thames Water – the UK’s biggest water supplier with 15 million households across London and the South East – said the funding plan drawn up last July was subject to conditions, including a business plan supported by “appropriate regulatory arrangements”.
The company has been battling to secure its future since last summer, with a funding crisis leaving the debt-laden firm on the brink of emergency nationalisation.
The GMB union has accused shareholders of ‘blackmailing’ Ofwat
Thames Water has been left with debts of nearly £15bn, while it has also missed sewage spill and leakage targets with the bosses coming under intense scrutiny over the firm’s performance.
Much of the debt was run up by previous owner Macquarie, which sold the utility to its present consortium of owners in 2017.
Macquarie, an Australian investment bank, took £1.2bn of dividend payments from the water company during its decade of ownership.
It has also paid out about £3.7m worth of bonuses, benefits and incentives to company executives over the last three years, while total executive pay, which includes base salaries, surpassed £10.6m over the last four financial years.
Steve Reed, the Labour shadow environment secretary, said: “The Conservatives weakened regulation, allowing water companies to get massively in debt while the sewage system crumbled and illegal sewage dumping hit record levels.
“The Conservatives’ negligence is why the country’s largest water company is now in this worrying position.”
Thames Water supplies around 15 million households across London and the south-east of England
Thames Water was privatised alongside all other water companies in England in 1989 under Margaret Thatcher, when she sold off the nationalised water and sewage industry for £7.6bn.
It has since proven controversial, with water quality improving but debts accumulating and the nine large companies paying out as much in dividends as they have made in profits.
Last summer, a rescue funding plan was agreed with shareholders, including a Canadian pension fund and China’s sovereign wealth fund, that would see them pump in £750m overall with the first £500m due by the end of this month.
But it is understood that industry watchdog Ofwat has refused to bow to the water giant’s demands for concessions, said to include a 40 per cent bill hike for customers, an easing of capital spending requirements as well as leniency on regulatory penalties.
Thames Water’s sewage treatment works have come under scrutiny
The firm has now said these regulations make the plan “uninvestable”, and as a result the shareholder support letter from last July “has not been satisfied”.
“The first £500m of the new equity that had been anticipated will not be provided by Thames Water’s shareholders by 31 March 2024,” it revealed.
Thames Water said it was in ongoing talks with industry regulator Ofwat to secure regulations that are “affordable for customers, deliverable and financeable for Thames Water, as well as investible for equity investors”.
It said once the new regulatory plan is agreed with Ofwat, it “intends to pursue all options to secure the required equity investment from new or existing shareholders”.
Mr Weston said: “Our 8,000 staff remain committed to working with our partners in the supply chain to provide our services for the benefit of our customers, communities and the environment.”
Thames Water has debts of £15bn
He later told BBC Radio 4’s Today programme: “If at the end of the day, probably well into the end of next year, we were in a situation where we had no equity then there is the prospect of special administration, but we are a long way from that point at the moment.”
Ofwat has said the water company must seek further funding for its turnaround plan, but sought to assure customers that “safeguards” were in place to protect services to households.
An Ofwat spokesperson said: “Safeguards are in place to ensure that services to customers are protected regardless of issues faced by shareholders of Thames Water.
“Today’s update from Thames Water means the company must now pursue all options to seek further equity for the business to turn around the performance of the company for customers.”
They added: “Thames Water is a business with a regulatory capital value of £19bn, with £2.4bn of cash/liquidity available, and an annual regulated revenue of £2bn and new leadership team.”
Thames Water said it was in ongoing talks with industry regulator Ofwat
(PA Archive)
In a joint statement, Thames Water’s nine investors claimed that Ofwat had “not been prepared to provide the necessary regulatory support” for their funding and turnaround plan.
They insisted their funding agreement “was a solution which addresses the root cause of Thames Water’s challenges without the need for any taxpayer funding”.
They added: “However, after more than a year of negotiations with the regulator, Ofwat has not been prepared to provide the necessary regulatory support for a business plan which ultimately addresses the issues that Thames Water faces.
“As a result, shareholders are not in a position to provide further funding to Thames Water.”
