Under the plans, the average water bill would rise to about �407

Ministers plan to limit water companies' spending on environmental improvements to cap price increases.

Environmental schemes which could be cut include planned improvements to water quality in Plymouth Sound.

The government's view on what improvements are needed was due to be announced at the end of January but has now been delayed until the end of February at the earliest.

Struggling to pay

South West Water (SWW) plans to raise bills by 22% by the end of the decade, to an average of �407 a year.

But the government is concerned such increases will produce an outcry, particularly after the controversy about high council tax increases.

Even if the government does cut the environmental programme, it is likely to only save about �4 a year on the average bill.

Last month, watchdog WaterVoice South West said many SWW customers would not be able to afford proposed price increases.

WaterVoice said many customers were already struggling to pay their water bills and there was a lot of hostility to higher prices.

SWW said its business plan was a realistic assessment of future need and it did not want to have to raise prices.