United Utilities has confirmed it will pay £20 compensation to all 17,000 customers who have been affected by a boil water notice in parts of Greater Manchester.

Businesses that have incurred extra costs or loss of earnings will receive a separate letter setting out details of how to claim which will then be reviewed on a case by case basis.

The company will also consider claims from customers who feel they have incurred additional costs due to exceptional circumstances.

The Consumer Council for Water (CCWater) has welcomed United Utilities’ swift decision to make the payment - the water watchdog was consulted by the water company on the compensation payout which will be made automatically to all affected customers this week.

The notice to boil tap water was issued to safeguard public health after a technical fault on equipment was detected at the Buckton Castle water treatment works.

The payment will be made to all households and businesses that have been affected by the disruption since the early hours of Sunday morning.

Robert Light, Northern Chair of the Consumer Council for Water, said:

“We’re disappointed that customers have suffered this disruption but we’re pleased that United Utilities is acting swiftly to compensate them. We think the payment fairly reflects the inconvenience this has caused customers, as well as the additional energy costs of having to boil drinking water.”

 “Consumers expect a reliable supply of drinking water so we will need to understand whether UU could have done anything differently to prevent this incident from happening and what lessons the company is going to learn from it.”