Water bill price hikes: how to save money

Water bills in England and Wales could rise by even more than initially expected over the next five years, according to figures released by the regulator, Ofwat.

In July, Ofwat provisionally announced that water bills would rise by 21%, totalling a £94 increase, between 2025 and 2030. This would amount to an average of £19 per year.

But following a consultation period, 10 out of 11 water suppliers have requested higher bills, amounting to a 40% rise in bills over the same period.

Some suppliers have argued that higher bills are needed for upgrading pipes, sewers and reservoirs. But some of the increases are also designed to meet ‘changes to the proposed rate of return for investors’.

Ofwat is due to make a final decision on bills increases in December.

The UK and Welsh governments have today launched a review into the water industry, responding to public outrage over bills and sewage pollution.

Here, we explain the bill rises previously forecast by Ofwat and what the government's water review will look at.

How much will water bills go up by?

Most households will be affected by price hikes to water bills, but the size of the increase depends on your supplier. 

The table below shows Ofwat's intial forecast for water and sewage bills for an average household in 2024/25, and its proposed average bills for 2029/30.

But these price hikes are likely to be even higher, after 10 water suppliers requested bills to rise by 40% over the next five years. We'll update this table in December when Ofwat announces its final decision.

Source: Ofwat

• Read more: how to complain about your bills

Government announces review of water sector

The UK and Welsh government have announced an independent review into the water industry.

The ‘Water Commission’ will focus on systemic problems with the industry and its infrastructure, looking at how to drive economic growth and clean up rivers, lakes and seas.

Its findings will then be used to shape new legislation to reform the water sector.

This review comes after years of underinvestment and extreme weather, leading to floods, supply issues, leaks and sewage pollution, as well as poor performance from suppliers.

Last week, Ofwat ordered water suppliers to return £158m to customers via lower bills after failing to meet key targets around pollution and leaks.

This is the fourth consecutive year that Ofwat has told water companies to issue refunds over missed targets and performance.

• Read more: water suppliers told to cut customer bills by £158m over poor performance

How to reduce your bills

If you think you're being overcharged for your water, it's worth getting in touch with your supplier.

Follow our four tips below to keep your bills to a minimum.

1. See if a water meter could save you money

Installing a water meter means you'll only be charged for the amount of water you use, as opposed to being on a rateable value (RV) tariff, which is a fixed rate based on measures such as the council rates and size of your property.

There's some debate around whether a meter will save you money.

One Which? member told us: 'I have a water meter installed as part of a campaign by Bristol water. My direct debit for a single occupant household went from £60 to £30 a month.'

But another member warned: 'As a couple, our bills went down considerably when a meter was introduced. But for our neighbours, who have two teenage daughters, it went up considerably.'

According to Citizens Advice, a good rule of thumb is that you could pay less with a meter if there are fewer people in your property than there are bedrooms. Those who live alone, or live in a property with a high RV value, are likely to benefit from metered billing.

Many suppliers will install a meter for free and give you the option to switch back to an unmetered charge within 24 months if you're unhappy.

You can also calculate your water usage on your water provider's website to see how much you'd be likely to pay with a meter.

If you're renting, you can ask for a water meter to be installed if your lease is at least six months long. If your tenancy is shorter than six months, you must ask your landlord for permission.

In some areas of England, compulsory metering is being introduced.

2. Ask for an assessed charge instead of a meter

Suppliers are sometimes unable to install a water meter. In this instance, they should offer you an assessed charge as an alternative to the RV tariff.

This assessed charge is based on average bills paid by customers who do have meters.

Your water provider will work out your assessed charge, which is then approved by the regulator, Ofwat.

The charge will likely only apply if it's lower than your RV bill. But in some areas where compulsory metering is being introduced, you'll likely be moved on to the assessed charge (if you can't have a meter installed), even if it's higher than the current RV tariff.

If you live alone and can't have a water meter fitted, you can ask to be put onto a fixed single-occupier tariff.

3. Look at social tariffs and debt support schemes

Your water supplier will probably have schemes to help if you're struggling to meet payments.

Water companies offer social tariff schemes if you're on a low income; they also have debt support schemes if you haven't kept on top of payments.

These schemes often enable you to agree a new repayment plan with your supplier, which can reduce the amount you need to pay back if you pay on time.

It's also worth seeing if your water company has a fund that can help you clear your debt. Grants can be awarded to help with water debt or other financial difficulties.

4. Limit your water use

Making small changes to your day-to-day life could help to reduce water use and save money (particularly if you have metered billing).

Fix dripping taps or leaks to help prevent waste, and take a shower instead of a bath.

Turn off the tap when you're brushing your teeth and washing your face; this could save you more than two bucketfuls of water a day.

Put your washing or dishes on a full-load programme. Surprisingly, it uses less water than two half-load programmes.

Use a watering can in the garden instead of a hosepipe.

Check your water supplier for more advice on how to cut back on water use.

This article was originally published on 12 July 2024 and updated on 23 Ocober 2024 with the news that the government has launched a review of the water sector.