Millions of families face soaring water bills under Government plans to introduce compulsory meters.

Ministers say the scheme, announced yesterday, will force households to use less water and reduce the risk of droughts.

But families already reeling from rising fuel, food and council tax bills could be up to £200 a year worse off.

Critics also point out that water companies are losing 750billion litres (165billion gallons) of water every day from leaky pipes - despite making record profits.

The plans are part of a package of measures to improve water quality, prevent droughts and reduce the risk of floods.

To ease pressure on drains and sewers, homeowners will be banned from paving over their gardens without planning permission - unless they use porous material that lets rainwater soak into the ground.

Phosphate chemicals in washing powders that make clothes brighter should also be removed to cut pollution, the Government said. Water meters will be introduced in parts of England at risk of drought by 2030 at the latest.

These include most of the South and East and parts of the Midlands. But water firms will be encouraged to bring in meters much sooner.

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