Water bills 'to rise 30%'

Water bills are set to rise by up to 30 per cent from next year after the Government ordered a £7billion clean-up of the environment.

Environment Minister Elliot Morley today called on water companies to spend billions stopping raw sewage polluting streams and rivers, preventing chronic leakage from pipes, removing contaminants from treatment works, relining corroding mains and protecting wetland wildlife sites.

But the clean-up - much of it demanded by European Union directives - will cost households. Mr Morley said: "We expect there to be significant rises in water prices."

Thames Water is already calling for a 20 per cent price increase in April 2005, taking the average annual bill in the capital to £235.

Anglian, Southern, Essex and Three Valley water companies have all said they need household bills to rise by 35 per cent over the next five years.