Money expert Martin Lewis has urged households to follow a handy rule of thumb in order to slash their water bills. Water bills, thanks in part to a lack of competition for business, have increased significantly in the past few years.
Water bills set to rise
Millions of households are set to see unexpected increases to their water bills after the industry watchdog gave suppliers the provisional go-ahead for an extra £3.4 billion in spending. It follows Ofwat already allowing water firms to increase bills by 36% between 2025 and 2030.
Ofwat said five of 13 suppliers across England and Wales are set to be given permission to increase charges for customers to pump in the additional investment by the end of the decade to help upgrade networks to cope with new housing and data centres, and tackle forever chemicals to ensure drinking water is safe and reliable.
The 'bedroom rule' explained
The UK is one of only three countries in the world which has privatised water, along with Chile and a few cities in the US. But in the past decade, 180 cities in the US have put their water back into public ownership.
For those already struggling with the high and ever-increasing cost of water bills, despite the recent hosepipe bans limiting usage, there is something you can do which often cuts bills. If you don’t currently have a water meter, your bills will be estimated based on the size of your house. If you only have a few people living at home, you will probably save money if you get a water meter installed.
Martin explained via his MSE website: “If there are more bedrooms in your home than people, or the same number, check out getting a meter. With many providers, you've two years to assess whether having a water meter is worth it and, if you decide it isn't right for you, you can ask your water company to switch you back to an unmetered bill.”
Social tariffs and savings
Martin added: “If you're on a low income (up to about £21,000 a year), you may be able to access a social tariff. All water companies offer them, and they can slash as much as 90% off your bill by lowering or even capping what you pay, whether you have a water meter or not – though some also require you to be on certain benefits. About 5.7 million households are eligible, but have yet to claim, missing out on an estimated average of £160 a year.”
One MSE reader, Debbie, emailed Martin Lewis to thank him after cutting more than £1,000 off her annual water bills. She wrote: "I took your tips on installing a water meter, and my Direct Debit has gone from £108/month to £19/month [a saving of £1,068/year]. Thank you Martin"
