All the latest money news

All the latest money news

The water industry is made up of local monopolies where each company is responsible for both the supply and distribution of your water. This leaves householders little choice but to continue paying the bills that land on their doormat.

The bad news is that water bills are set to rise on average by 11 per cent to £286 a year from April. These rises could have been far greater had the companies had their way. Because there is effectively no competition, the industry regulator Ofwat keeps a tight control on the prices charged by water companies. The watchdog decides how much prices will increase, using information about investment plans and costs that are provided by the companies.

Bills vary sharply, with householders in the south- west paying the highest, at £386 a year from April. They bear the brunt of having 30 per cent of England's bathing water off their coastline and are at the mercy of European Union beach-cleaning directives.

Northumbria will have the cheapest bills from April, at an average £243, with Thames Water customers in London not far behind at £246 a year.

Deryck Hall, senior analyst at WaterVoice, the consumer watchdog representing customers in England.....continued below

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'Unmetered tariffs, which are a fixed amount no matter how much water you use, are based on the rateable value of your home,' he says, 'If you are a couple living in a high rateable value house and don't use much water, you may be better off switching to a meter, where you pay for the water you use.'

Anyone can ask their water company to install a meter for free. Hall says: 'Most companies have a calculator on their website which can help customers to decide whether they will be better off with a meter. We also have one on our website.' www.watervoice.org.uk

Smokers' fillip

Determined or addicted smokers may not want to be reminded that Wednesday 9 March is national No Smoking Day. But smokers who are also nearing retirement may like to use the day as a prompt to shop around for a better deal on their pension annuity, according to the Annuity Bureau.

Because their life expectancy is less, smokers can earn more from their annuity, an income for life that is purchased using a pension fund. The Annuity Bureau suggests that smokers can boost their retirement income by hundreds of pounds by shopping around. For example, a non-smoking man aged 65 with £100,000 to spend on an annuity can get an income of £6,729 a year from Prudential. But a smoking man of that age can earn £829 a year more by taking an annuity from GE Life with special smokers' rates.

The Annuity Bureau has a free guide to annuities, available on 0845 602 6263.

Pedigree premiums can bite

Pedigree entrants at Crufts dog show starting on 10 March may persuade some people to consider buying one of their own. They will not only fork out serious sums to buy one but can also face high premiums for insurance cover.