The government has announced plans for the biggest overhaul of England’s water system in more than 20 years, promising stricter regulation, stronger oversight of companies and greater protection for consumers.
The new Water White Paper creates a single national regulator with expanded powers to inspect and enforce performance standards. A Chief Engineer will be appointed inside the new regulator to reintroduce hands-on infrastructure checks, intended to prevent water firms from self-assessing their own systems. Water networks will face regular compulsory assessments, similar to vehicle MOTs, to identify weaknesses before they lead to supply disruptions.
Under the reforms, water companies will be required to adopt long-term planning and face tighter accountability when performance falls short. The regulator will have new powers to intervene quickly through a Performance Improvement Regime, aimed at restoring services and protecting consumers and investors. Supervision will shift from a standardised national model to dedicated teams monitoring each company’s operations.
The White Paper also proposes measures to reduce household consumption and improve environmental outcomes. Smart metering and mandatory water-efficiency labels for domestic appliances are expected to save around £125 million in water and energy costs over the next decade. Building on the ban on plastic wet wipes introduced last year, the government intends to tackle pollution at source through improved drainage and stricter controls on sewer misuse.
Over the next five years, £11 billion of industry investment will target improvements to thousands of storm overflows, while £5 billion will go towards upgrades at wastewater treatment sites to reduce phosphorus discharges. These efforts form part of a wider £60 billion programme to restore river quality by 2050. Local partnerships will receive increased funding to manage pollution and promote conservation at a regional level.
The package also includes plans for a new independent Water Ombudsman with powers to enforce fair compensation and require prompt responses to customer complaints. This is intended to strengthen resolution processes following recent water supply disruptions across parts of South East England.
A Water Reform Bill will be brought forward to implement the new structure, supported by a £104 billion package of private investment between 2025 and 2030 to upgrade infrastructure and secure long-term resilience.
