Archive: MoneySavingExpert's Money Tips Email

(Bad) News. Water bills up 20% next year, typically £86 more, yet don't think there's nowt you can do...
9 need-to-knows to cut costs - some save £500+

The anger was palpable last week as the water regulator Ofwat announced its five-year plan for English & Welsh water costs. Overall, it's permitting firms to increase bills by a typical 36% over that period, but much of that rise is front-loaded, which means the big jump comes in April 2025 with a typical 20% rise.

Within the water industry, as Martin says, "perversely, we may have the worst of both worlds, with privatisation but no competition" - the fact you can't switch supplier leaves many thinking it's a done deal when it comes to saving money. It isn't. Our Cut water costs guide is overflowing with tips, with the need-to-knows covered here. Water you waiting for?

1. Next year's rise varies hugely depending on where you live: the worst is up 44%; the best a fall of 3%. Ofwat says rises will help pay for a £104 billion upgrade of the water sector to deliver "substantial, lasting improvements for customers and the environment". It's less than water firms wanted (and with Thames Water's solvency possibly teetering... water is in crisis), yet for consumers it feels like another hammer blow.

We've a full table of how much each firm will increase bills by, both next year and over the full five years. It's worth checking.

2. The Big Saving: Millions in England & Wales can save £100s switching to a FREE water meter. In England and Wales you can get a free water meter, which measures how much you use, so you're billed accordingly.

If not, you'll get a water bill. These are based on the old pre-1990 rates system - which is roughly your home's rentable value, essentially a proxy for how much your property's worth. So those with bigger homes tend to pay more, even if they're using little water. Which is why Martin's rule of thumb says...

For some, especially in bigger houses with few people, the savings are large. Amanda emailed us: "We moved to a water meter and our bill has gone down from £119/mth to £25/mth [a saving of £1,128/yr]. Thanks MSE."

If a water calc shows savings are likely, you can ask your firm for a more formal assessment if you want.

Can you switch back if it works out worse? If you voluntarily fit a meter, with most (though not all) firms you've up to two years to change your mind and go back without penalty (see firms' water meter switch-back policies). Though if you moved into a home that already had a water meter, or are in a compulsory metered area, you are stuck. 

3. Told you can't get a meter? In some ways, that's the best route... Some with shared pipes or in flats are told by water firms they can't "practicably" have a meter fitted. If so, ask for an 'assessed charge bill', which works out how much you'd likely pay if you had a meter. Then, if that's cheaper than your normal water bill, switch to it. If not, don't.

Luke, pictured, emailed us a couple of weeks ago to share his success: "I became a first-time buyer in October 2024, so I'm new to utility bills etc. My water company wanted to charge me £50/mth for just me in a two-bed flat. I called them to negotiate - they told me that's the price and to deal with it.

"I looked on MSE and saw the value of getting a water meter installed. So I booked an appointment (which they hid from me in the first place), and because they could not fit the meter, I'm now on assessed charges of around £100/yr, saving me £500/yr that quickly.

"Seriously, your website really looks out for consumers, no deceit or marketing ploys, which a lot of us have become savvy to from other places. Thank you for all your help."

4. Live in Scotland or Northern Ireland? There are no domestic water charges in Northern Ireland (it's done as part of domestic rates), so there's no need for a meter.

In Scotland, water bills are based on Council Tax bands and included in a 'combined service charge' along with other services. While you can have a water meter installed, it's actually quite pricey, so unless you live alone in a manor-type property, estimated payments are cheaper.

5. Are you in one of up to 2 MILLION homes on low incomes or Universal Credit missing out on saving £100s with a social tariff? Social tariffs are offered by all water firms and can reduce what you pay by up to 90% by lowering or even capping the cost of water bills or water meter charges. Yet there are almost 2 million eligible households missing out on help, according to the Consumer Council for Water. See firm-by-firm social tariff help.

As Shirley emailed earlier this year: "Due to your advice, I changed my mother-in-law to a social tariff for her water bill. She has moved from £19/mth to £7/mth [a saving of £144/yr] and no longer has to worry about how much water she's using. Thank you for all the useful information."

6. Or many qualify for WaterSure help, typically worth £160. To be eligible, you need to have a water meter, receive benefits, and EITHER have 3+ children OR a medical condition such as Crohn's or eczema which means you need to use more water. If that's you, you may be able to have bills capped under the WaterSure scheme. The average saving's £160/yr according to benefits analysts Policy in Practice.

As Nyla emailed: "Thank you for writing about being able to get help with your water rates. I applied for my mum - she was eligible for the WaterSure scheme as she receives Pension Credit and has a medical condition. I've been told that they will now cap her water rates at £300."

7. 100,000s of water-saving freebies are available. Households across much of the UK can bag a range of FREE water-saving gadgets - eg, shower heads, water butts, tap inserts etc - and there are usually 100,000s available. See check for water-saving freebies - though it is hit-and-miss depending on which water company's area you're in. 

8. Can you get a sewerage rebate? It's generally assumed that used water creates a similar amount in sewage (what goes in, must come out!). Yet if you've a way of draining or storing water - such as a soakaway, cesspit, pool or big garden - some of the water you're using isn't going into a public sewer, so you may be able to claim a rebate worth roughly £35/yr.

9. Cut your water use - we've 30 ways to save. For those on a water meter, reducing use saves you money directly. But even if you're not, much of the water we use is heated, so cutting water reduces energy bills (and helps the environment). There are lots of ways to cut usage - here are just a few:

- Don't wallow, shoot into the shower. A quick shower uses far less water than a long soak in the tub.
- Running your tap to temperature? Fill up empty bottles while you wait for it to heat up and use round your home to water plants or for the kettle.
- Save washing up. Instead of washing up as you go, save it up and do it in one go to minimise the amount of hot water used.

For a full list see our 30 tips to cut your water usage.

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PS: A short note from the boss... Over to Martin: "I'm taking a break from work over the festive period. So while I started this email off, I've left the rest of it, like all the emails you'll get until 2025, in the overly-capable hands of the MSE team. More importantly though...

"I'd like to wish all who celebrate a joyous, peaceful and warm-hearted Christmas and Happy New Year. Thank you for your continued support. For those who find this time of year difficult, grief-filled, or lonely, may your passage through it be easy, with more smiles than you expect."