Water poverty in England and Wales

Water poverty is conventionally defined as households spending more than 3% and 5% of their net income after housing costs on water. Water bills have risen faster than general prices and faster than earnings since privatisation. In 2009/10, 23.6% of households paying for water in England and Wales were spending more than 3% of their income on water and sewerage and 11.5% were spending more than 5% of their income. The article explores variation in water poverty and prospects for the future. If water bills rise 1% per year faster than household income, water poverty will increase to 35% by 2033 based on a 3% definition. Policy options are discussed.