Severn Trent announces £770m investment for Birmingham and the Black Country as water bills to rise by 47%

Water industry regulator Ofwat has given its support for the company to invest some £15bn in sector-leading plans for the region over the next five years which will also boost water supplies and improve river health.

Benefits for customers in Birmingham and the Black Country will include

• Spending £1.7 billion to reduce spills at storm overflows across the Severn Trent region, including £360m across Birmingham and the Black Country  

• Around £110m being invested in Net Zero process emissions at five waste treatment sites 

• £43m to be spent on delivering 75 miles of new pipes, creating 49 new jobs. 

The announcement comes after Severn Trent announced rises for water bills for its customers - with an annual water bill to increase by an average of 47% over the next five years, according to Ofwat.

Ofwat said it expects an average yearly bill of £398 in 2024-25 will increase to £583 by 2029-30, the second highest rise out of the 11 water and wastewater companies in England and Wales.

The average bill increase for Severn Trent customers, expected by Ofwat over the next five years, translates to a jump of just over £15 a month, from £33.16 to £48.58.

Severn Trent insists its bill remains the second lowest in England and said it had launched a support package to ensure that no-one struggled to pay their water bill.

Didar Dhillon, Severn Trent’s Group senior lead for Birmingham and the Black Country, said: “We are delighted Ofwat has confirmed our plans which means huge new investment for Birmingham, the Black Country and the Severn Trent region.  

“This fantastic news means we can now continue with the next phase of our ambitious plans to benefit customers, our communities and the environment for generations to come.

"The £15bn investment represents an investment of £3,000 for every household in Birmingham and the Black Country during the next five years. 

"Some 70,000 customers helped to shape the five-year plan, with the highest acceptance rate in the sector.   

"We have also ensured that bills remain the second lowest in England and Severn Trent has one of the biggest financial support schemes in the water sector for anyone who needs it. 

 “Our investment plan will ensure we can reduce our responsibility for rivers not achieving good ecological status to less than two-per-cent by 2030. 

" It is a plan built on strong foundations as Severn Trent is the sector-leader for environmental performance and financial resilience.”