Water bills are rising; Here’s how to save money on yours

During 2025/26, annual water bills are due to increase by an average of 26% or £123. The specific amount will vary depending on the circumstances of the household, but everyone will face an increase.

Announcing the price increase at the end of January, Ofwat – the water regulator – acknowledged that they “recognise the challenge that some customers are facing with increasing financial pressures and understand that the water sector is not the only area where customers are faced with rising costs.”. 

They also stated that they are pushing water companies to double the amount of support available for customers who are struggling to pay their water bills, and strongly encourage customers to contact their water company to access this support.

In this article we take a look at the whole issue of the water you use in your home. We’ll explain:

• Why water bills are rising;
• How to save money on your water bills;
• What kind of support water companies can offer.

Why water bills are rising

The upper limit for water prices is set by Ofwat, based on a five-yearly price review. The last review was in December 2024. Prices are increasing because of work that needs doing on the infrastructure of water supply in the UK, including:

• Improvement of storm overflows; 
• Reduction of leaks; 
• Rollout of another 10 million smart meters; 
• Reduction of sewer flooding in homes;
• Boosting of water supply to manage demand;
• Increasing the replacement rate of water mains pipes.  

Once Ofwat has set the upper limit, it is then up to individual water companies to decide how much to charge customers within these limits.

Most water customers in England and Wales get their water from one of 17 suppliers. Customers cannot choose which company to use; it is completely dependent on the location of where they live. A list of water suppliers and the locations they serve is available on the Water UK website here.

How to save money on your water bills

Bearing in mind that the increases mentioned above will vary between households, are there ways that you can save money on your water bills?

The simple answer is yes.

The first thing is to understand how you are charged for your water:

• If you live in England or 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 your home. You will also pay for sewerage services either as part of your water bill or separately if it is a different company that deals with this. 
• If you live in Scotland, you are more likely to pay for water and sewerage as part of your Council Tax, with charges related to your Council Tax band. 

If you do not have a water meter, it is definitely worth considering. Most people find that a water meter helps to save money as it enables you to track how much water you are using and make changes where needed. 

Every household in England and Wales can apply to have a meter installed for free, and if it is not suitable for your property for any reason, you should be offered an “assessed charge” instead. If you live in Scotland, you can apply to Water Scotland for a water meter, but you may have to pay for installation.

It is also worth checking whether you may be eligible for a sewerage service rebate. Your sewerage services bill includes a specific charge for surface water drainage. This covers the cost of rainwater running off your roof and driveway into the nearest public sewer. But if surface water from your home runs into a soakway and not a public sewer, you may qualify for a rebate of the surface water drainage charge.

But however you pay for your water bills, there are also several things that you can do in your home to save money on them. Here are a few tips to try:

• Have a shower instead of a bath

A five minute shower uses around 40 litres of water, as compared to 80 litres used by a typical bath. 

• Make your shower one minute shorter

For example, if you shower for four minutes instead of five, you will save 8 litres of water.

• Turn off taps when not being used

Leaving a tap running – for example when you brush your teeth – could waste up to 9 litres of water a minute. 

• Flush with less water

You can do this either by using the economy flush where possible, or by installing a water-saving device such as a buffalo cistern bag. You can find out more about free water-saving devices at Save Water Save Money.

• Use your washing machine and dishwasher less frequently

A washing machine can use up to 60 litres of water per cycle, and a dishwasher around 10 litres. So if you use each one slightly less frequently you could save a significant amount of water per week. 

• Fix plumbing issues

It can be tempting to ignore minor plumbing niggles such as a leaking toilet or dripping tap. But anything like this will gradually waste a lot of water, and lead to increased water bills. And if you have larger plumbing issues to sort out, it could be worth taking out a small personal loan to get them done sooner rather than later, to save money on your water bills.

• Reduce use of garden sprinklers and hosepipes

Garden sprinklers and hose pipes can use up to 500-1,000 litres of water per hour. You can save money on water bills by reducing your use of these devices and using watering cans instead. It’s also a good idea to install a water butt in your garden to collect rainwater which can then be used for watering your garden.

What kind of support water companies can offer

More than 2 million households are now receiving some kind of help with their water bills, such as reduced tariffs, payment breaks and debt forgiveness. This is likely to increase to 3 million households by 2030. 

The two main forms of help with water bills are social tariffs and the WaterSure scheme.

• Social tariffs

Most water companies have a social tariff scheme for customers who are either on low incomes or are receiving certain benefits. You can find more information about the social tariff schemes offered by your water company on the Consumer Council for Water website.

• WaterSure

There is also an assistance scheme called WaterSure, which will cap water prices at a lower amount, regardless of how much water you use.

To be eligible for WaterSure you need to:

• have a water meter;
• need to use a lot of water for medical or family reasons;
• claim certain benefits such as Universal Credit, Housing Benefit or Pension Credit.

You can find out more about the WaterSure scheme from Citizens Advice here. 

We hope that the information in this article helps you to understand more about your water bills, how to save money on water bills, and where to seek help with your water bills if you need it.

During 2025, we will be covering lots more ways to save money on day to day living, so remember to check back here soon with us at Loans 2 Go.