£15 billion investment, 7,000 jobs, and cleaner rivers for the Midlands as Severn Trent gets Ofwat’s backing for its ‘Outstanding’ five-year investment plans

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 and meet ecological targets years ahead of schedule

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.

Biggest 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 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 www.stwater.co.uk/about-us/our-plans-2025-2030