Insights ¦ Cost of living: wave eight

Key Take Aways

• Nearly half of water bill payers (47%) report difficulty paying household bills ‘sometimes’ or more often, with stability over the past year.
• One in six (17%) water bill payers currently struggle with their water bill; concern about water costs remains high at 32%.
• Awareness of financial assistance for water bills remains steady at approximately 34%, but actual receipt of support is lower at 8%.
• Younger consumers (18-34) show higher trust in water companies’ ability to deliver value for money (59%) compared to older groups.
• Trust in water companies to ensure quality, reliability, and environmental responsibility has historically declined but shows marginal recovery over recent months.
• The proportion drinking bottled water has increased to 27%, with taste and perceived safety being primary drivers; ethnic minorities and younger consumers are more likely to opt for bottled water.
• Customers’ priorities focus on quality drinking water, reliable service, and value for money; these are consistent across demographics.
• Mental health issues significantly impact bill payment behaviours, with over half of those struggling avoiding or delaying opening bills.
• Expectation of financial stability over the next year improves marginally, with a decrease in those fearing future financial hardship.
• Perceptions of likely future bill payment difficulty have decreased to 34%, from 40% in the previous wave.
• There are notable generational trust gaps: younger consumers trust water companies more for service quality and environmental actions but trust older consumers less for value for money.
• Consumers associate their decision-making with factors such as leak fixing, environmental protection, and quality of drinking water, despite rising bills.

Key Statistics

• 29% of water bill payers report worse financial status than a year ago; 24% report improvements.
• 47% struggle to pay household bills ‘sometimes’ or more often; stable from previous waves.
• 17% currently struggle to pay their water bill.
• 34% of water bill payers are aware of financial support options, with just 8% actually receiving support.
• Drinking most often tap water (54%) has decreased from 60%, while bottled water consumption has risen from 23% to 27%.
• 64% trust their water company to ensure good quality drinking water; trust to provide value for money is at 39%.
• 51% of bill payers often have to choose between expenses; this has decreased slightly from 55%.
• Concern about water costs scored an average of 5.9 on a 10-point scale; lower than wave seven’s 6.1.
• 25% of bill payers are very concerned about a £5 monthly increase; 54% about a £25 increase.
• 33% of bill payers expect their financial situation to improve over the next year.
• 36% believe they will struggle to pay utility bills over the coming year, down from 42% previously.
• 30% of respondents who struggle to pay bills are more likely to drink bottled water.

Key Discussion Points

• The stability in the proportion of households struggling financially suggests resilience amid rising utility bills.
• Persistent awareness gaps around support initiatives highlight a potential area for increased communication efforts.
• The moderate resurgence in trust levels indicates that transparency and service quality improvements can restore consumer confidence.
• Demographic disparities in trust and behaviour warrant targeted communication strategies, particularly for older consumers.
• Increasing bottled water consumption among vulnerable groups underscores issues of tap water taste and safety perceptions.
• The correlation between mental health challenges and bill payment behaviour emphasises the importance of holistic customer support.
• Anticipated investments in the water sector need to be paired with proactive customer engagement on bill impacts and service improvements.
• Consumers’ primary decision drivers—leak prevention, environmental concerns, and water quality—remain central to their expectations.
• The decline in concern about future bills signals a cautious optimism, yet highlights ongoing financial anxiety.
• Financial support awareness, although steady, remains insufficient given the gap between awareness and receipt.
• Trust metrics reflect the importance of ongoing communication and visible action on environmental and infrastructural issues.
• A comprehensive approach combining service quality, transparency, and targeted support could strengthen customer trust and satisfaction.

Document Description

This article presents the eighth wave of a detailed report analysing water customers’ experiences amidst ongoing cost of living pressures in England and Wales. It synthesises survey data collected in October 2025 covering household financial stability, bill management strategies, awareness and utilisation of support, perceptions of water quality, environmental trust, and future outlooks. The report provides insights that are vital for senior managers in financial services and utility sectors, highlighting customer behaviour, trust dynamics, and ongoing affordability challenges in a context of increasing sector investment and fiscal pressures.