Water companies say they need more money to fund improvements

The government should also look at the way poorer families get help with bills, said the Commons Environment, Food and Rural Affairs Committee.

The recommendations, in a report, follow an inquiry into water pricing.

The MPs say it is likely prices will be raised in the current periodic review, but that Ofwat should closely examine the claims companies make about costs.

Improvement cost

In early December, UK water regulator Ofwat gave companies United Utilities and Northumbrian Water the go-ahead to raise their bills.

The decision will allow the two water companies to increase charges from April 2004 to March 2005.

The increases come after both companies asked for help to cover rising customer debt problems, as well as the cost of monitoring water standards.

The MPs report said: "There has been considerable debate about the scale and cost of the environmental improvements that the Environment Agency and English Nature have put forward.

'Review of help'

"Water customers must not be expected to pay for every improvement to the aquatic environment, but where water companies are responsible for damage to the environment, they, and their customers should pay to repair that damage."

They called on the government to "urgently address the issue of how those responsible for diffuse pollution should pay for it," and for a better system of water management.

"The government should review the way poorer households are helped with their water bills.