Ministers want householders to cut their water consumption by a fifth using compulsory metering and sharply rising prices.

Hilary Benn, the environment secretary, aims to cut use by 30 litres a day per person by 2030. He has said the current daily consumption of 150 litres is unsustainable and should be reduced to 120 litres.

The proposed cut is the deepest in the history of the water industry, reversing years of rising consumption.

It is likely to mean sweeping changes in the way water is priced and paid for, including compulsory metering, water labelling for “wet goods” such as washing machines and dishwashers and incentives to restrict flow from taps and showers.

Such measures would probably be applied selectively at first, mainly in areas already short of water such as the southeast, Cornwall and East Anglia.

Defra, the environment ministry, said: “We believe a combination of metering, tariffs, water efficiency and new technology can reduce water usage to 130 litres per person per day by 2030 and a goal of 120 litres per person per day is within reach.”

Benn warned the water industry earlier this year that he wanted drastic cuts, but the impact on bills and payment methods is only now becoming clear.

The Environment Agency is about to complete its study on water resource management, looking at how the industry should coordinate resources in the face of climate change and growing demand.

Benn set out the 120 litres target in Future Water, a Defra report, and reiterated it in a meeting at last month’s Labour party conference.

He said: “The more water we use the less there is for the countryside and wildlife. We need to adapt.”

The Defra report said water meters could cut use by 10% and added: “The current system of charging for water, based on rateable values from the 1970s, is increasingly indefensible.”

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