Households left with undrinkable tap water will receive compensation for the first time, ministers have announced.

The Department for Environment, Food and Rural Affairs (Defra) has set out tough measures to crack down on water companies failing their customers. It includes doubling water bill compensation for poor customer service, such as for low water pressure.

The list of circumstances that can trigger compensation will also be expanded, including automatic payments for those issued boil notices (telling them to boil their water before drinking or cooking with it).

The minimum payout for households receiving boil notices would be £40.

The Department for Environment, Food and Rural Affairs (Defra) has set out tough measures to crack down on water companies failing their customers. It includes doubling water bill compensation for poor customer service

The proposals, which will be subject to an eight-week consultation, will increase the amount of reimbursement customers are legally entitled to when standards are not met

Households left with undrinkable tap water will receive compensation for the first time, ministers have announced (stock image)

The proposals, which will be subject to an eight-week consultation, will increase the amount of reimbursement customers are legally entitled to when standards are not met.For example, reimbursement for internal flooding from sewers will increase from a maximum of £1,000 to £2,000.

Earlier this year, 16,000 residents of Brixham, Devon, were issued boil water notices.

If the compensation changes had been in place at the time, they would have automatically been entitled to payments. The regulations will not apply retrospectively.

Jenny Suggate, of the Consumer Council for Water, said: ‘Demanding higher standards of service and improving levels of compensation when things go wrong will incentivise water companies to get things right the first time.’