Government prepares for release of landmark review into ailing water sector
The review was commissioned by the UK and Welsh governments as part of their response to systemic industry failures, which include rising bills, record sewage spills and debt-ridden company finances, although ministers have ruled out nationalising companies.
The Government will respond to the recommendations in Parliament later on Monday.
The review reportedly includes proposals to establish a new system of regulation, which is currently split between Ofwat, the Environment Agency and the Drinking Water Inspectorate.
Ministers will announce a consultation that could lead to axing Ofwat, which oversees how much water companies in England and Wales can charge for services, according to the Guardian.
Ofwat has faced intense criticism for overseeing water companies during the years that they paid shareholders and accrued large debts while ageing infrastructure crumbled and sewage spills skyrocketed.
In an interview with the Sunday Times, Environment Secretary Steve Reed suggested he was in favour of a new model where regional boards managed water in their areas, including representatives from water companies, local authorities and other organisations.
He said: 'I think the catchment-based model has a lot to commend it. Because if you can manage what's going into the water better, you can clean up the water faster.'
Asked on Friday if there were plans to scrap Ofwat as the regulator, Downing Street said the Government will wait for a final report.
A No 10 spokesman said: 'We are waiting for Sir Jon Cunliffe's final report next week, you can expect us to set out our response after that on what more we will do to turn the sector around.'
A Government spokesperson said: 'We are not going to comment on speculation.' Ofwat declined to comment.
Mr Reed is also expected to announce a new Government pledge to halve sewage pollution from water companies by the end of the decade, during broadcast interviews on Sunday.
He said: 'Families have watched their local rivers, coastlines and lakes suffer from record levels of pollution.
'My pledge to you: the Government will halve sewage pollution from water companies by the end of the decade.'
But in his Sunday Times interview, he acknowledged that bills were unlikely to fall from their current level, saying instead that an investment of £104 billion in the sector would 'avoid the need for any big bill hikes in the future'.
It comes after the Environment Agency on Friday said the number of serious pollution incidents caused by water companies across England rose by 60% in 2024 compared with the previous year.
The figures showed companies recorded a total of 2,801 pollution incidents, up from 2,174 in 2023.
Of these, 75 were categorised as posing 'serious or persistent' harm to wildlife and human health – up from 47 last year.
The Environment Agency said it is clear some companies are failing to meet the targets it has set on pollution, attributing failures to persistent underinvestment in new infrastructure, poor asset maintenance and reduced resilience because of the impacts of climate change.
Earlier on Friday, the Public Accounts Committee also released a report which called the level of pollution 'woeful' and recommended an overhaul of the regulation system.
The cross-party group of MPs said the Government must act with urgency to strengthen oversight of the sector to rebuild trust and ensure its poor performance improves.
The Independent Water Commission published its interim report in June, which found the sector to be beset with 'deep-rooted, systemic' failures.
While the paper outlined the commission's direction of travel, it stopped short of providing detailed recommendations on policy, regulatory reform and corporate governance, which are now expected in the final report.
The interim review pointed to the need for better regulation of water companies but it did not recommend the wholesale scrapping of Ofwat, which some have urged.
Nationalisation, which some campaigners have also called for, was excluded from its terms of reference when commissioned by the Government.
Meanwhile, the Conservatives accused Labour of copying the previous government's policies and doing nothing to halt rises in water bills.
Shadow environment secretary Victoria Atkins said the Government should be 'transparent' about where the money to fix Britain's sewers was coming from, warning that consumers may have to stump up some of the cash.
She added: 'Labour's water plans must also include credible proposals to improve the water system's resilience to droughts, without placing an additional burden on bill payers and taxpayers.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
North Wales Chronicle
21 minutes ago
- North Wales Chronicle
Campaigners and industry respond to ‘once-in-a-generation' water reform report
Mike Keil, chief executive of the Consumer Council for Water (CCW), said public trust in water companies had been 'drained' by poor environmental performance and wider service failures. The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry. Mr Keil said: 'The commission has set out significant changes to the regulatory system. 'But water companies have always had the freedom to do what's right by their customers – and many have made bad choices.' Mr Keil said affordability must be a key focus of reform, with households already struggling following this year's sharp rise in water bills. 'More people are turning to CCW to complain about not being able to afford their bill,' he said. 'Over two in five households have told us they've cut spending on essentials like food to make ends meet. 'The case for a single social tariff for water has never been more urgent.' He welcomed recommendations to make the existing voluntary ombudsman scheme mandatory, saying: 'We're delighted the commission has recommended building on our work at a time when we're seeing more people turn to us for help.' But River Action chief executive James Wallace accused the commission of falling short, saying it had 'blinked' when faced with a chance to break with the past. 'This was a once-in-a-generation opportunity to reset a broken and corrupted system,' he said. 'Instead, we've been handed vague policy nudges that leave the current failed privatised water company model intact.' Mr Wallace said nothing less than 'a credible plan to rescue Britain's rivers, lakes and seas' was needed, including a clear path to bring 'failing companies like Thames Water into public control'. He called on the Government to put Thames Water into special administration as a 'powerful statement of intent', warning: 'Our water is our life-blood and not for sale.' Water UK, the trade body for the water companies, welcomed the commission's findings, calling reform 'long overdue'. A spokesperson said: 'Everyone agrees the system has not been working. 'These recommendations should establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas.' Richard Benwell, a member of the Independent Water Commission's expert advisory group and chief executive of Wildlife and Countryside Link, said a 'culture of rule-breaking and non-compliance' was harming rivers and wetlands, and called for a more powerful and independent environmental regulator. He welcomed the proposal for new regional water authorities but warned reforms would fall short without proper funding and a clear steer from Government. 'Reforming regulators without fixing resourcing and remit would be painting over cracks,' he said. Ali Morse, water policy manager at The Wildlife Trusts, said the report offered 'strong recommendations' for more integrated, regionally driven planning, but warned time was running out to act. 'The commission has set the framework – now the Government must act with purpose,' she said. Gary Carter, national officer at the GMB union, said the report confirmed what the union had argued for years – that water privatisation had been a 'disastrous failure'. He accused company bosses of profiting while the water infrastructure 'crumbles through lack of investment' and sewage pollutes rivers. 'It's a disgrace – and one Ofwat has overseen,' he said. 'Now is the time to fundamentally reform the water sector and renationalise this vital resource.'
Western Telegraph
33 minutes ago
- Western Telegraph
Senedd cross-party support for backbench sign language bill
Mark Isherwood formally introduced his British Sign Language (BSL) bill in the Senedd on July 16, nearly seven years after calls were first made for legislation in Wales. Mr Isherwood, a disability rights campaigner for decades, explained the bill would introduce legal requirements to promote and facilitate the use of BSL in Wales. He warned: 'Too often, deaf people are unable to access vital public services because they cannot communicate in their first language. 'This denies them their rights and places them at a significant disadvantage – whether in health care, education, employment, transport or otherwise." He told the Senedd: 'BSL plays a crucial role in enabling communication and promoting inclusivity in everyday life – for many deaf individuals, BSL is their primary language. 'Deaf BSL signers in Wales cannot access services in their first language and this is unacceptable. As one individual undergoing major surgery shared 'throughout the whole time, I did not understand anything'.' He added: 'If passed, therefore, this will be the most progressive BSL law in the UK.' Jane Hutt welcomed and supported the bill on behalf of the Welsh Government, which recognised BSL as a language more than 20 years ago in 2004. Wales' social justice secretary, who has worked with Mr Isherwood on developing the proposed legislation, described the bill as a step towards lasting change. The backbench bill would be the first passed by the Senedd in a decade, with bills on mental health, food, education, autism and older people's rights rejected or withdrawn in that time. Concerns have been raised about the Senedd's capacity for legislation brought forward by backbench members who are not a part of the Welsh Government. The BSL bill, as an example, was accompanied by a 113-page explanation and impact assessment. If passed, it would be a first since Liberal Democrat Kirsty Williams introduced a bill on safe nurse staffing levels in 2014, which became law two years later. Labour's Jenny Rathbone chairs the Senedd's equality committee, which she said had 'cleared the decks' to focus on seeing the BSL bill become an Act by May 2026.
Western Telegraph
33 minutes ago
- Western Telegraph
Call from Senedd members over final say on farming support
Samuel Kurtz, the Conservatives' shadow rural affairs secretary, led a debate on the protest-plagued proposals for the sustainable farming scheme (SFS) on July 16. He said: 'Today, we're simply asking that this Senedd be given the opportunity to vote: a final, binding vote on the sustainable farming scheme before it is implemented. We all remember last year's protests. We know the strength of feeling across the country. 'A scheme of this scale, affecting over 80% of Wales' land, must carry democratic legitimacy. Let us vote. Let the elected members of this chamber, from every corner of Wales and from every party, have their say.' The former journalist, who is from a farming family, warned of a 'cliff-edge' in the transition from the basic payment scheme (BPS), which is set to fall by 40 per cent, to the SFS. He said: "If you don't join the SFS, you forfeit your BPS. If you do join the SFS, you forfeit your BPS entitlements. There's no going back… for you and your business. Is it any wonder anxiety is soaring? Is it any surprise that our farmers' mental health is deteriorating?' Labour's Lesley Griffiths, a former rural affairs minister, was extremely disappointed to see Welsh ministers cut a target of 43,000 hectares of new woodland by more than 60 per cent, with plans for 10 per cent tree cover on every farm ditched. Peter Fox, a Tory council leader-turned Senedd member, said he was planning to retire as a farmer having 'just about had enough', with the new SFS 'still laden with bureaucracy'. 'Most farmers just want to farm,' he said. 'They want to produce food and they want to look after their farm… but the priority in this SFS is clearly no longer food production.' Labour's Lee Waters warned the debate around farming has been dragged into 'culture wars', with divisions heightened by political debate. Deputy first minister Huw Irranca-Davies said Senedd members would get an opportunity to vote on regulations related to payment rates underpinning the scheme in the autumn. In the final vote before the Welsh Parliament breaks for summer recess, Senedd members voted narrowly, 22-20, against the opposition motion
