Planned increases to water bills from April 1st are expected to take the average household bill to £294, according to new figures.

The increase will push bills to the highest they have been since 1989 and mean an average increase of around 5.5 per cent per household.

This news comes as people in the south-east of England face ongoing water restrictions and research reveals 3.6 billion litres of water a day is lost across England and Wales as a result of leakages before it even reaches households.

Comparison website Uswitch.com say customers could save £125 by switching to a water meter as they would only pay for the water they use rather than the rateable value of their property.

"While water meters may not result in cheaper bills for everyone, there are many households who would benefit by having one installed," said Tim Wolfenden from uSwitch.

The rise in water bills combined with other increases in the cost of energy mean the average household in England and Wales is looking at having to spend almost £100 a month just to cover the essentials in heating, light and water.

You could save a small fortune when you compare utility quotes to find the best combined deal. It may be cheaper to buy all from one company or go for separate companies but you won't know until you investigate thoroughly.