Family budgets hit by 4.1% rise in water bills

London water bills are to rise by 4.1 per cent this year, industry regulator Ofwat said today.

The watchdog defended the price rises as "broadly in line with inflation" but consumer groups noted that few workers are likely to get a comparable pay rise.

The increase takes the average annual bill for Thames Water customers to more than £350.

Across Britain, the water and sewerage bill is to rise by 4.6 per cent this year. Ofwat says this is a lower increase than the companies had requested.

Price comparison website uSwitch warned that the increase "could squeeze the last drops out of household budgets".

Ann Robinson, director of consumer policy at uSwitch.com, said: "After a full round of energy price rises, increased VAT and inflation that is outstripping pay rises, consumers may feel like they're going under."

uSwitch said some households would find it cheaper to install a water meter, a move that could save £56 a year.