The Department for Environment, Food and Rural Affairs has confirmed the government's move to examine water prices next week.
The Government is working across the board to reduce the cost of living and help hard-working households who are feeling the pinch.
We want to ensure customers get a good deal from the water sector and will be setting out our approach next week.
Prime Minister David Cameron will take action to help households struggling to meet rising water bills, his spokesman said.
"There'll be some progress next week on water bills," the spokesman said. "The prime minister wants to see household expenditure being brought down."
His comments suggested that Britain's biggest water companies could join energy giants at the centre of a political row over the rising cost of living ahead of an election in 2015.
Liberal Democrat Michael Moore has been replaced as Scottish Secretary by the party's chief whip Alistair Carmichael.Read the full story ›
Speaking to Tom Bradby on the Agenda the Prime Minister has said that the reshuffle in the Cabinet is an opportunity to "bring on fresh talent."
What you do is refresh the team and I've got a talented bunch of MPs and it's right some of them should be serving in the government.
It's an opportunity to bring forward some fresh talent. There was a mixture of people from all sorts of backgrounds and walks of life. The main thing is are they qualified to do the job and I think they will prove that.
- The Agenda with Tom Bradby will be broadcast on ITV tonight at 10.35pm
David Cameron will speak to Tom Bradby on the Agenda tonight after a busy day rearranging his Cabinet.
As well as the reshuffle, the Agenda will also be looking at the new WikiLeaks film the Fifth Estate.
Downing Street has tweeted with the full list of the government reshuffle:
The wife of Robert Syms, who was a Conservative whip, has taken to Twitter to air her anger after he lost his position in the reshuffle.
The self-proclaimed "David Cameron cheerleader" launched a scathing attack on the Prime Minister after her husband's demotion:
PM just fired father of my kids over the phone. Gave up chairmanship of a cttee to be a whip, worked hard and was widely acknowledged...
to be a good whip. He was utterly gracious and took it like a man, I am beyond furious. Loyalty counted for nothing.
Luckily for Dave he'll continue to be super loyal. I'd be fixing up drinks with Afriye, Crouch, Wollaston, Norman. No not really.
MPs have taken to Twitter to express their pleasure at the new Cabinet roles after the government's reshuffle:
Congratulations to @swilliamsmp for joining the Government as a Minister in CLG and Dan Rogerson as a Minister in DEFRA!
Congratulations to Lib Dem colleagues- Dan Rogerson MP joining the Government as Minister at DEFRA, and @swilliamsmp as a Minister at DCLG.
Liberal Democrat MP Norman Baker has moved from his role as crime prevention minister to a new Home Office job.
Hugh Robertson, formerly sports minister, has been appointed as Foreign Office minister.