What on earth is happening with water bills?

Rises in the cost of living seem endless. As soon as one bill seems to be settling down, another starts shooting up.

It’s like that now with water bills. Other areas such as energy and fuel seem to have stabilised – at least for now. But water bills are creeping up. In fact, the water regulator Ofwat, has proposed that the average household water bill in England and Wales needs to rise by up to £94 over the next five years. 

But why is this happening? Why is water becoming so expensive, and who decides on the cost anyway? And are there things that you can do to keep your water bills as low as possible?

In this article we take a look at:

• How are water prices decided?
• What is happening to water prices and why?
• What can you do to reduce your water bills?

How are water prices decided?

The upper limit for water prices is set by Ofwat. They base these limits on a five-yearly price review and set price limits on the basis of an investment and service package that customers receive from their water company. It is then up to individual water companies to decide how much to charge customers within these limits.

Most people in England and Wales get their water from one of 17 companies and have their waste water taken away by one of 11 firms. Households cannot choose which of these companies they use, it is purely dependent on where they live. You can find your designated supplier here.

What is happening to water prices and why?

At the moment water bills are increasing. Average bills for 2024-25 are due to increase by £27.40 to £473. The water industry then wants bills to rise by an average of 33% by 2030. They do not think that the increase proposed by Ofwat will be enough to tackle various current issues, including sewerage spills and fixing leaking pipes. 

It has been very well-publicised that Thames Water – which has said it could run out of money by next June – has been put into special measures by Ofwat. Thames Water – Britain’s biggest water company – now need to find new investors to fund their ongoing improvement plan.

A further complication with water prices is a new government initiative to crack down on water companies failing their customers, and being liable to pay higher compensation rates when basic water services are hit. 

A final decision on water prices is due in December, following a consultation. But more increases cannot be ruled out. So what can you do at home to keep your bills as low as they can be?

What can you do to reduce your water bills?

If you live in England and Wales your water bill will be based on either a water meter – where you pay for what you use – or on a set amount based on the rateable value of their home.

All households also pay for sewerage services as well, either as part of their water bill or separately if it is a different company that deals with this.

If you live in Scotland, you may have a water meter but are more likely to pay for water and sewerage as part of the Council Tax, with charges depending on Council Tax band.

But however you pay for your water bills, there are a few things that you can do to keep them at a minimum. Here are five tips on how to reduce your water bills:

• Get a water meter. Most people find this saves them money. Every household can apply to have a meter installed, and if it is not suitable for your property for any reason, you should be offered an “assessed charge” instead.

• Check if you are eligible for a sewerage service rebate. Your wastewater charges include a specific charge for surface water drainage, to cover the cost of rainwater running off your roof and driveway into the public sewer. But if surface water from your home runs into a soakway and not the public sewer, you may qualify for a rebate of the surface water drainage charge.

• Move to a social tariff. Most water companies have a social tariff scheme for customers on low incomes or for those who are receiving certain benefits. You can find more about the social tariff schemes offered by different water companies on the CCW website here.

• WaterSure scheme. If you have a water meter, need to use a lot of water for medical or family reasons, and claim certain benefits such as Universal Credit, Housing Benefit or Pension Credit, you may be eligible for the WaterSure scheme. The scheme caps water prices at a lower amount, regardless of how much water you use.

• Use less water. There are many ways that you can go about doing this. Some ideas to try are:

• • Have a shower instead of a bath. A typical bath uses around 80 litres of water, but a five minute shower is 40 litres – around half of this. 
  • Make your shower shorter. If you shower for four minutes instead of five, you will save 8 litres of water.
  • Turn off taps when not being used. A running tap can use up to nine litres of water a minute. So, for example, if you turn it off whilst brushing your teeth instead of keeping it running, this will save water.
  • Use less water when you flush the loo. One way to do this is to use the economy flush wherever possible. Or look into a water-saving device such as a buffalo cistern bag. Find out more about free water-saving devices at Save Water Save Money.
  • Use your washing machine and dishwasher less. A washing machine can use up to 60 litres of water per cycle, and a dishwasher around 10. So it pays to wait until you have a full load before using either machine and use the Eco setting wherever possible. 
  • Fix leaks and drips. If you have a leaking toilet or dripping tap, it can gradually waste a lot of water, which all gets added onto your water bill.
  • Find alternatives to hose pipes to water your garden. Garden sprinklers and hose pipes can use between 500 and 1,000 litres of water an hour, so why not use a watering can instead? Even better if you fix up a water butt in your garden to collect rainwater off your roof and can usually store about 200 litres of water. This is ideal for watering your plants, and reduces the amount of treated water you use. 

We hope that this article provides useful information on what is happening with water bills and how to keep your costs down.

In the unfortunate event of you being faced with an unexpectedly high water bill at any stage, remember that Munzee offers loans same day that would help you to get that bill paid straight away. 

Do check back in with us here again soon for more financial and lifestyle tips from Munzee Loans.