More than 300,000 households affected by the cryptosporidium bug in their water supply will get compensation from United Utilities, Sky News has learned.

A “boil water notice” for residents in many parts of Lancashire is now in its seventh day – and the supplier said this precaution will remain in force until Thursday evening “at the earliest”.

United Utilities told Sky News that there will be compensation for all households affected – and pledged to contact billpayers “proactively” once the water supply has returned to normal.

A spokesman added: “We recognise this has been incredibly inconvenient. We’ll be able to announce more details in the coming days, but this is being worked on.”

Businesses that believe they have lost profits because of the water bug are also being advised to write to the company, so any claims for compensation can be reviewed on a “case-by-case basis”.