Those living in a home with three or more bedrooms could be overpaying on bills as Martin Lewis issues advice which could save them £500 a year.
The Money Saving Expert founder revealed the ‘three bedroom rule’, urging Brits to make a change which could save them hundreds of pounds. S
peaking on the BBC Radio 5 Live Podcast with Adrian Chiles, he explained that anyone with three bedrooms in their home should check how many people live there, compared to the number of rooms.
If the number of people who live at the house is less than or equal to the number of bedrooms, there is a high chance that you are overpaying on your bills.
Martin said: “The first question you ask yourself is ‘Do you have more or the same number of bedrooms in your property than people?'”
However, the rule is only applicable to those living in England and Wales due to the different policies in Northern Ireland and Scotland.
For those who have less people living in their home than bedrooms, the money saving expert advises having a water meter installed opposed to paying the standard annual fee.
He said: “The bill is based on the value of your property,” with the financial expert informing listeners that the bigger the property, the bigger the bill – despite usage.
Martin added: “Very simply, you’ve got a big house, not many people living in it; it’s likely to be cheaper if they’re measuring your actual water usage. It’s going to make it a lot cheaper doing it that way.”
The Money Saving Expert founder used the example of two people living in a three bedroom house now saving hundreds of pounds a month.
He said: “Ursula got in touch with me and said, ‘I got a water meter fitted as there’s only two of us in a three-bed house. We now pay £16 a month instead of £60 a month.’ That’s £500 a year cheaper – nothing to be sniffed at.”
For people living in properties with shared pipes, having a water meter installed may sound like a barrier.
However, Martin insisted it “is actually a sweet spot”. Residents in this position can request “an assessed charge” which calculates the bill difference of having a meter installed.
If the assessed charge shows your water bill charging more than your usage, you are entitled to pay the lower calculated fee – even if you start using more.
He said: “You then get given that and if that’s less than your water bill you can go on your assessed charge but it doesn’t matter what you use, you’re going to pay the assessed charge. If it’s more you stick to your water bill.”
