Many households are struggling with debt due to increased cost of living expenses, and it seems that water is next to be hit by a price hike as suppliers are submitting draft business plans to watchdog Ofwat.

Thames Water have announced that they expect bills to rise 3% per year over the next 5 years, in order to fund their £6.5billion investment plan is expected to be the largest spending programme ever carried out by a UK water company.

The watchdog will decide whether to allow above-inflation price rises at a time when customers are being financially squeezed by other utility bills, as United Utilities want to raise their water prices by 2.7% above inflation.

Ofwat chief executive, Regina Finn, said: “This is the start of the process of making decisions on how each company proposes to provide value-for-money, long-term, high-quality water services to its customers.”