Severn Trent has received the green light for its transformational £15bn investment programme to improve service for customers, dramatically boosting river health and creating 7,000 new jobs for the region. 

Water industry regulator Ofwat today gave its support for the sector-leading plans for the region over the next five years, calling the proposals ‘Outstanding’.  

Severn Trent’s £15 billion plan will benefit its 4.6 million customers: 

·                     Second Lowest Bill in England: Severn Trent will continue to deliver its industry leading service for the second lowest bills in England 

·                     Support for Those Who Need It Most: £575 million financial assistance package will help 700,000 customers – about one in six households to help manage their bills

·                     Cleaner Rivers, Fewer Overflows: Over £2 billion will be spent on improving river health, aiming to prevent spills from storm overflows.

Today’s announcement paves the way for Severn Trent to deliver on its ambitious plans, which include improving infrastructure, while keeping bills affordable and supporting local communities.  Severn Trent has already started delivering these plans, after raising an additional £1bn from its investors last year.    

Liv Garfield, Chief Executive, Severn Trent said: “This is a huge boost for the region with £15 billion of new investment across the Midlands in what matters most to our customers – secure water supplies, cleaner rivers, and affordable bills – while creating thousands of new jobs to strengthen the region’s future. 

“We’re proud that Ofwat has recognised our ‘Outstanding’ plans as being ambitious. It’s a plan to bring growth and positive change, built on strong foundations given Severn Trent is the sector-leader for environmental performance and financial resilience - with a proven track record for delivering successful large-scale investment projects.

“And whilst it’s great to get the green light for these ambitious plans, we haven't been waiting, and 2024 has seen our biggest year of investment in river health. We’ve delivered over one thousand improvements to cut spills from storm overflows this year alone, and we’re totally committed to going further and faster to deliver for our customers.”

Creating jobs and opportunities  

Severn Trent’s plan is a major win for the region’s economy, with an expected 7,000 new jobs.  Roles will be recruited at Severn Trent and in its supply chain that will also support new apprenticeships and skills programmes during the next five years. 

What’s more, Severn Trent is recruiting for 440 new jobs right now to be part of a £420 million project to install 865 miles of new water pipes to provide an even more reliable service for customers and businesses.  The project will see leaks being reduced, helping customers save water, with fewer supply interruptions. 

Second lowest bill in England with huge financial support package

Today’s news confirms that Severn Trent’s bill remains the second lowest in England, while delivering record investment and sector leading performance. 

It represents an investment of more than £3000 for every household during the next five years. 70,000 customers helped to shape five-year plan, with highest acceptance rate in the sector.   

Severn Trent has today also unveiled one of the water industry’s most comprehensive affordability packages, providing financial assistance to around one in six households – equivalent to 700,000 households by 2030.  

Liv said “We’ve secured this new £15 billion investment, whilst also keeping bills the second lowest in England. We recognise that any increase can be hard, so to support any customer who needs help with their bill, we’ve launched a new financial support package – supporting around one in six households across our region during the next five years. If anybody needs help with their bill, the help will be there.”

Investing to improve river health  

Severn Trent has committed to go further and faster than anyone else to reduce spills from storm overflows - faster than any other water company and faster than Government targets.  A huge team of engineers have delivered over 1,000 improvements to cut spills from storm overflows, with early analysis suggesting some 24,000 spills so far have been prevented.  

Liv added: “I’d like to reassure everybody that we’re committed to protecting our region’s waterways, and this investment allows us to continue the work we’re delivering to make long-lasting change. We’re making progress every single day, and by 2030 our storm overflow operations won’t contribute to any river in our region not meeting good ecological status. This is ahead of targets, and our aim is to lead the way in the UK and deliver global best practice.”

Severn Trent is the only company to earn the Environment Agency’s highest four-star rating for environmental performance five years in a row. Today’s news also confirms Severn Trent has Ofwat’s backing to become operationally Net Zero by 2030 – in what will be a UK first. 

Investing in communities 

·                     £10 Million Support for Local Communities: Supporting grassroots initiatives and communities  

·                     Training and Employment Programmes: Helping 100,000 people out of water poverty and back into work through skills training and opportunities, including partnerships to support disadvantaged groups. 

Ofwat’s support to Sevent Trent’s plans means it can help 100,000 people across the Midlands with skills and employability training to tackle the underlying causes of water poverty. Thousands of people have already benefitted from attending events like Big Boost for Derby, Birmingham and Coventry job fairs. The company has also continued with its successful apprenticeship programme and has linked up with the Trailblazers charity to go even further in helping people to find work and reach their potential. 

Severn Trent’s ‘Final Determination’ from Ofwat has secured the ‘best deal’ for its customers – the most investment for the lowest bill.  

To read more about Severn Trent’s investment and job opportunities, visit Our plans 2025 - 2030 | About Us | Severn Trent Water

ENDS

NOTES TO EDITORS:

Information on support schemes available for customers:

Multiple schemes and initiatives are available at Severn Trent to help customers who are eligible to reduce their water bills, debts and water consumption. They include: 

·                     The Big Difference Scheme can offer a reduction of water bills to eligible Severn Trent customer who are struggling to pay and who have a household income below £22,010. If your application is successful, the 12-month scheme will design a tailored payment plan. For more information, click here

·                     WaterSure is a scheme where eligible customers could see their bills capped if they have low income, a medical condition or large family. Read more here

·                     Get Water Fit. Use our calculator to see what water you are using and where you could make savings and help the environment. Read more here

·                     Single Occupier. If customers live alone and can’t have a meter fitted, they could benefit from a lower tariff if they qualify. Read more here

·                     Customer Assistance Scheme. Severn Trent is also working in partnership with independent charity Auriga to support people with their financial needs, including debt advice. For more information, click here

Information on Severn Trent’s new water mains programme 

Severn Trent announced 440 new jobs – that are open for recruitment now – to work on a programme to install 865 miles of new water pipes by 2030, to provide an even more reliable service for customers and businesses. The programme will deliver huge benefits including:

·         Reduce leaks: With these new pipes, this will help Severn Trent to cut down on water leaks by 16% by 2030 and by 50% by 2045.

·         Save on costs: By updating old infrastructure now, costly repairs can be avoided.

·         Help customers save water: Customers in areas where pipes are being upgraded will get smart water meters, helping customers track usage and save money on bills.

·         Provide reliable service: An ever-improving modern water system means fewer supply interruptions, so you can count on your water being there when you need it.

        In line with Ofwat’s PR24 Final Determination document issued on 19th December 2024, Severn Trent Water has been given a total expenditure allowance of £15 billion over the 2025-2030 period.  This is £8 billion more than the current period (2020-25) 

·         When the industry consumer body, the Consumer Council for Water, consulted customers on water company draft determination plans, there was an 81% acceptance rate for our proposed bill increases – the highest customer acceptance rate in the country.