Water heater leaking from top

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Here is a pic:
https://goo.gl/photos/8j919Ksvx1iHUAdp6

This is at my dad's house. He has alzheimer's and is on a fixed income so I would like to solve this as cheaply as possible even if it is only a temporary fix.

I saw water coming from underneath the red disk thingy on the hot water outlet, indicated by the red arrow on the left, and I thought some might have been swirling up from the hole with the other arrow on the right, but I'm not sure about that one.

We are in a drought here, and the house is spring-fed into a cold water holding tank, so it's possible some sludge or sand from that tank might have gotten into the heater, but I'm not sure about that either. The cold tank is very rusty and the drain, I'm told, cannot be opened.

Water from the bottom (cold) release on the heater has some sand in it but not too much. Didn't look sludgey though. I didn't drain much. Water from the hot release which is closer to the top looked clear.

The water from the heater is the same temp as always.

I am hesitant to drain the heater it because I don't want to waste water, but maybe that is the thing to do first?
 
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This is a UK site - you would need to ask advice from a registered plumber nearer to home!

I wouldn't wait too long though as there looks to be some corrosion evident on the cylinder.
 
Ah. I see. Splash out. Will do. (I don't know what splash out means btw).
 
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