Millions get new rights to compensation over dirty tap water | Personal Finance | Finance [Video]

Households let down by their water company will get greater rights to claim compensation and a doubling of the minimum payment to £40.

The net effect of the changes is that a household that loses its supply for two-and-a-half days would see compensation rise from a paltry £40 to £250.

While the total compensation bill payable by a water firm involving a small town of 4,000 people with 10,000 residents would rise from £160,000 to £1 million.

Environment Secretary Steve Reed said households and businesses have been let down by water companies.

He said: “Our water industry is broken. After years of failure, households and businesses have been let down by water companies time and time again. The new Government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment.”

The proposals …