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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.

– Defra statement

Read: Water companies next to face Government scrutiny

PM to tackle rising water bills

Prime Minister David Cameron will take action to help households struggling to meet rising water bills, his spokesman said.

British water firms are next to face political scrutiny over pricing. Credit: PA

"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.

Read: Energy firms defend price rises

PM to tackle rising water bills

Liberal Democrat Michael Moore has been replaced as Scottish Secretary by the party's chief whip Alistair Carmichael.

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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.

– David Cameron