How to cut your water bill, as firms warn of looming charges for tackling sewage pollution crisis

Household water bills will go up this year to pay for water firms’ £10billion investment in cutting sewage pollution.

But there may be a way to beat the hikes, with little-known water bill discounts for eligible households.

Water companies have come under fire for huge sewage overflows into rivers and the sea. They have recently confirmed a £10billion investment for works to reduce the problem. Some will be paid by shareholders, but some will be paid by consumers.

Water companies will confirm the exact level of bill increases later this year, This is Money understands.

But the news has angered some households, who feel they are effectively being charged twice for something their water bills should already cover.

Reacting to the news that consumers will have to pay extra, a spokesperson for the Consumer Council for Water said: ‘Given that one in five people already struggle to pay their water bills, we are concerned that this could push many more households into water poverty. 

‘At the moment customers that cannot afford their water bill face a postcode lottery of water company support schemes, without a consistent level of assistance.’ 

Emma Clancy, chief executive of the CCW, added: ‘Investment will ultimately impact customers’ bills. 

‘Water companies will need to work far more efficiently, but we also need a comprehensive baseline of financial support for the one in five households already struggling to afford their bills.’

How to cut down your water bill 

Customers may be able to avoid some or all of the extra charge coming later this year, with discounts of up to £100 possible.

However, exactly what you get all depends on your water use, and on which part of your water bill will go up this year to pay for water firms’ sewage works. 

It also depends on which of the 13 UK water companies you are with, as each takes a different approach to working out these discounts.

But in short, it is possible to get discounts on your water bill if: 

a) Your house is not connected to the public sewer

b) You can prove water from your property does not enter a public sewer.

Here’s how it works. There are two main elements to water bills, water and sewerage, each making up about 50 per cent of a yearly bill.

Water charges are for the fresh water that comes out of your taps. 

Sewerage charges are for the water you use that goes back into the system as waste to be treated.

If the water companies decide this year’s increase is to come from the water charges of the bill, households cannot avoid it.

But if water firms apply the increase to the sewerage part of a bill, it is possible to dodge some or all of it.

That is because if your property does not connect to public sewers then you can apply to your water firm for a rebate – a form of refund.

For example, Londoners can get discounts of up to 90 per cent on the sewerage part of their bill.

To get this, households have to prove to Thames Water that more than 10 per cent of the water they use is not returned to a public sewer.

If you are able to prove 50 per cent of the water you use is not returned to a Thames Water sewer, you can get a 40 per cent discount on your sewerage bill.

That is because Thames Water starts giving discounts once more than 10 per cent of customers’ water does not enter a sewer. 

The average Thames Water customer without a meter pays £428 a year for water, of which £219 is for sewerage and £209 is for fresh water.

That means this example customer would save 40 per cent of £219, or £87.60. 

Other water bill rebates

There is a second rebate available if surface water from your property does not drain into a public sewer.

This is known as a ‘surface water drainage rebate’.

Each water company has slightly different rules on how either of these rebates work.

For example, South West Water will give you a five per cent reduction on the sewerage part of water bills for water that does not drain into their sewers, provided you have a meter. 

This works out at up to around £11 a year for the average customer.

There would also be a second additional reduction of £21.79 on your annual sewerage fixed charge if you are not connected to surface water drainage at all.

If you qualify for these rebates, you will not be charged for sewage or surface water drainage on future bills and/or some of the amount you paid for this previously will be refunded. 

Each water company should explain the kind of evidence that it would need to see in order to get a discount.

If you have problems with your application, and you are unable to resolve them with your company, you should contact the CCW.

A water meter could save you money if there are fewer people in your property than there are bedrooms. 

Other ways you can cut down water bills

Check if a water meter can save you money 

You can’t switch to a cheaper water provider, but getting a water meter fitted could make your bills cheaper. 

Changing to a water meter may save you money if you live in a household that does not use much water. 

It may also be worth changing to a meter if your property has a high council tax rateable value –  as some water bills are based on this. 

But getting a water meter installed can also mean your bills go up, not down. 

A good rule of thumb is that you could pay less if there are fewer people in your property than there are bedrooms, according to the Citizens Advice charity. 

The CCW has a free water meter calculator which tells you whether you could save money with a water meter.

It asks questions about your water usage and gives you your estimated costs if you have a meter. 

If you find you are not better off after changing to a meter, you can usually change back to how the bill was paid before within twelve months. 

Anglian Water say having a sub meter fitted to an external supply like a garden tap can also help reduce your bill. 

Because the water you use in the garden doesn’t go back into the sewers, your water company may adjust the amount you are paying for sewerage services once you provide it with a reading from the sub meter.

Use less water 

There are also small things you can do around the home every day to save money on your water bills. 

The CCW says cutting your daily shower down from 10 to five minutes could save you nearly £200 a year if you have a water meter. 

Don’t leave the tap running when brushing your teeth. A tap left running wastes about six litres of water ever minute. You could save about £30 a year if you don’t do this, while a household of four could save £100.

Only boiling the kettle with the exact amount of water you need is an easy way to save up to £60 a year.