Severn Trent water bills will rise by 10 per cent this year – the largest increase of the major providers.

But Severn – which supplies water to households in Rutland – said it remained one of the cheapest in the country.

An average annual bill will now be £587 – up £52 on last year – but still £73 below the national average and £172 lower than the highest provider Southern Water.

Neighbouring Anglian Water, meanwhile, has hiked prices by seven per cent, meaning residents will pay around £674 a year – a rise of £44.

A Severn Trent spokesman said: "Our bills remain the second lowest in the country, £73 below the national average for water and waste services and £172 lower than the highest bill. 

"We know however, bills rising can be worrying, so we want our customers to know there's help if they need it. By 2030, we plan to be helping around one in six households with some form of financial support. 

"This includes a discount on bills of up to £390 if customers are eligible, and debt support. 

"Around £8million a day is being spent on investment like laying new pipes, brand new water sources, river health and creating thousands of jobs, as our £15billion investment for the Midlands continues."

Anglian's customer services director Don Maher said: "We do everything we can to keep our bills affordable, and water bills are still one of the cheapest household bills. 

"But delivering the services and environmental protections that we know customers expect to see does mean we need to spend more on that infrastructure today. 

"We know money is tight for many people at the moment, and we want our customers to know that we're here to help. 

"We help more than 300,000 people every year with support that's tailored to their needs."

Any Severn Trent customers who are struggling to pay their bills are encouraged to contact the Bill Help Hub via stwater.co.uk/billhelphub.

Anglian customers can call the firm's Extra Care Team on 0800 169 3630.

David Henderson, Water UK chief executive, said: "We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas.

"While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult. That is why we will help around 2.5 million households – more than ever before – with average discounts of around 40 per cent off their water bill."