The 4% price drop will take the average annual bill from £413.33 to £396.60, industry trade body Water UK said.

This means water bills are around the same level that they were a decade ago it added, but prices will vary depending on which water company customers are with.

The news comes after water regulator Ofwat set out its price review for 2020 – 2025, forcing companies to reduce customer bills by an average of £50.

As well as reducing average bills, Water UK said customers who struggle to pay their bills will be given more help such as through social tariffs for those on a low income or receiving certain benefits.

Water companies can also cap bills for low income customers who use a lot of water for essential family or health reasons.

Water UK chief executive, Christine McGourty, said: “The water industry is committed to giving customers good value for money. For around £1 a day, customers get the world-class quality water they need and their wastewater managed responsibly.

“Companies are also committed to investing for the future and protecting the environment, with an ambitious goal to achieve net zero carbon emissions for the sector by 2030. And companies are increasing the assistance available for customers who need it most. The number of people getting help to pay their water bills will almost double, whether that’s through reduced tariffs or targeted support.”