Cash-strapped residents face a further financial blow after Scottish Water announced a five per cent hike in charges.

The increase, which comes into effect from April, will see the amount households pay for water and waste services rise by an average of 37p per week.

Bosses at the utility firm said “significant future investment” in the water network is needed to protect services.

They also stressed that about half of the households supplied by Scottish Water receive a discount on the charges – which are collected alongside council tax payments – or are exempt entirely.

Douglas Millican, Scottish Water’s chief executive, said: “Our responsibility as a publicly-funded body is focused on providing excellent service and water quality and reducing our impact on the environment on which we depend.”

Customers also face further rises to their water bills in the years to come.

Mr Millican said the charges for 2023/24 have been “set at a level which recognise the need for significant future investment to protect services and the current economic challenges faced by many.”

Mr Millican added: “Charge levels in the future are likely to rise to meet our strategic objectives, meet the needs of our customers and to transform services so they become as environmentally and financially-sustainable as possible.”