The government has unveiled a ‘once-in-a-generation’ plan to overhaul the water system and protect households from disruption.
The Water White Paper sets out’ clear powers’ for the new regulator, delivering tougher oversight and stronger accountability for water companies.
And for the first time in two decades, a Chief Engineer will sit inside the new single water regulator.
Their job – says the Department for Environment, Food and Rural Affairs (Defra) is to “bring back the hands-on checks of water infrastructure Ofwat has failed to provide, ending the days of water firms marking their own homework, resulting in crumbling pipes and unreliable services.”
The new regulator will introduce an ‘MOT’ approach for water company infrastructure, requiring health checks on pipes, pumps and more. “This forward-looking approach means no more waiting to act, spotting problems before they happen and preventing water shortages.”
Defra says: “These reforms put prevention first, requiring companies and bosses to plan for the long-term.
“Where companies fall short, a new Performance Improvement Regime will give the regulator the power to act fast and fix failures so that underperforming water companies recover faster, protecting customers and the environment and giving stability to investors.
“At the same time, a roll-out of smart metering and mandatory efficiency labels on items like dishwashers and washing machines will help households monitor their water use and cut costs – delivering savings of over £125 million on water and energy bills over the next decade.
“Building on last year’s plastic wet wipes ban, the White Paper prioritises pre-pipe solutions that tackle the root causes of pollution through sustainable drainage, rainwater management, and cracking down on sewer misuse.
Environment Secretary Emma Reynolds said: “These are once-in-a-generation reforms for our water system – tough oversight, real accountability, and no more excuses.
“This builds on the tough action we’ve already delivered, from record investment to banning unfair bonuses.”
Dedicated supervisory teams for each water company will replace the current one-size-fits-all approach, giving the new regulator a thorough understanding of how each company operates – and the ability to intervene before problems take hold.
Stronger inspection powers, including the new regulator able to conduct ‘no notice’ inspections will help prevent the kind of disruption that recently affected communities across the South East recently.
Defra went on to say: “This stronger, prevention-first regulation will form part of a whole sector approach for tackling water pollution and protecting the environment.
“Water industry planning is currently fragmented across more than 20 different processes, which is inefficient and not cost effective. New reforms will instead bring councils, water companies, farmers, and developers together to deliver joined-up local plans to tackle river pollution, water resources and housing growth.
Other White Paper announcements include:
Over the next five years, £11 billion of water company investment will improve around 2,500 storm overflows. Nearly £5 billion is being invested in upgrades at wastewater treatment works to remove phosphorus part of a £60 billion programme to protect 15,000km of rivers by 2050.
Funding for local catchment partnerships will double, empowering local groups to stop pollution before it reaches waterways. More joined up regional water planning will reduce duplication, minimise bureaucracy and deliver better value for money.
The current system for dealing with customer complaints lacks teeth and too often leaves customers with nowhere to turn. A new Water Ombudsman will have legally binding powers to resolve customer complaints.
This builds on tough government action including introducing criminal liability for water bosses who cover up illegal sewage spills, and the power to ban unfair bonuses – blocking £4 million in bonuses last summer.
A 2026 Transition Plan will set out the path to this new system, and a new water reform bill will bring forward the legislation needed enable the system to take effect. It’s also backed by £104 billion of private investment over five years.
In response, a Water UK spokesperson said: “Today’s White Paper is a welcome step after the Government concluded six months ago that water’s regulatory system had failed.
“The focus must now shift from diagnosis to delivery. Our country will not have the environment it wants or the economic growth it needs until a new water regulator is established. Interim leadership should be appointed as soon as possible. We cannot afford for any more long-term decisions to be taken by a system everyone knows has failed.
“The need for major reform has long since been agreed. Delivery now needs to catch up.
“The introduction of a Chief Engineer is a welcome and long overdue step that puts technical capability back at the heart of regulation and ensures infrastructure isn’t regulated from behind a spreadsheet. It needs to be established quickly so the new regulator has the competence to oversee delivery from day one.
“The MOT-style approach recognises that customers want problems prevented, not explained after the fact. Proactive maintenance improves resilience and is better value for bill payers in the long run. As with a car MOT, diagnosing faults only matters if there is a clear plan to fix them and clarity on how repairs are funded.
“And the water efficiency measures are sensible and long overdue. Industry has been calling for mandatory efficiency labels since 2018 because it reduces demand and saves customers money. The proposals need to go further, but they are a clear step in the right direction.”
