Yorkshire Water has unveiled a £318 million investment programme to meet challenges posed by climate change, a growing population and ageing infrastructure.

The money will be invested in improving water and sewerage services, including drinking water quality and wastewater treatment plants, in the next 12 months.

The funding takes its total investment for the 2015-2020 period to £3.8 billion.

Some of the key projects the water firm is investing in include £30 million at its Hull Wastewater Treatment Works, £10 million to improve Whitby Wastewater Treatment Works and £13 million to replace old Victorian water pipes.

Customers will see their bills increase by just over 1% – or £5 – to £366 a year to fund the planned investment.

Richard Flint, Chief Executive at Yorkshire Water, said: “It is of paramount importance for us to keep our customers’ bills fair and affordable and that’s why we are the second cheapest water firm in the UK.

“The slight increase this year has been agreed with Ofwat and is largely due to inflation and the simple fact that the price of many of the products and services we use as a company has risen.

“The challenges of a rising population, ageing infrastructure and climate change all come with a cost too. By making this investment it will mean we can continue to meet a rising demand for more water, mitigate the impact of weather events such as extreme flooding and modernise our assets to enhance their performance.”

Industry regulator Ofwat, which sets limits on costs and approves charges made by water companies every year, was blamed by MPs for high bills.