I agree that we urgently need to restore public trust in the water sector, and Thames Water in particular.
The Government is receiving legal advice about a Special Administration Regime (SAR) for Thames Water. It stands ready to intervene to ensure the continued provision of this vital public service if required. A SAR is not a form of renationalisation, it is for the special administrator to manage the affairs of the company so the company continues to carry out its statutory duties pending rescue through debt restructuring or transfer via sale to new owners. I understand this may be disappointing news, but the Government has no plans to nationalise Thames Water or any other water company. It would cost billions of pounds and take years to unpick the current ownership model, slowing down current reforms and worsening sewage pollution.
I share concerns about water in England. Our rivers, lakes and seas are polluted with record levels of sewage and water pipes have been left to crumble. I share customers’ fury at rising bills while water companies have been allowed to profit at the expense of the British people when they should have been investing in our water system.
I am pleased that the Independent Water Commission has published its final recommendations. The Government is preparing to consult on creating one single water regulator responsible for the entire water system. This will provide clarity and direction, helping support investment and the clearing up all forms of pollution. I understand a full response to the report will be published later this year, with the Government consulting on proposed reforms and bringing forward new legislation on water reform.
I supported the Water (Special Measures) Act 2025, a major step forward in reforming and fixing the broken water system. Water company bosses now face imprisonment for lawbreaking. The water regulator, Ofwat, will be able to ban the payment of bonuses if environmental standards are not met, and there are powers to introduce automatic and severe fines against water companies. Water companies will also have to install real-time monitors at every sewage outlet, and they will be held accountable against a new code of conduct. I support action to ringfence money for investment in water infrastructure so it cannot be diverted for bonuses or dividends.
Thank you to those constituents who have contacted me about this important issue.
Best wishes
Rt Hon Hilary Benn
MP for Leeds South
Secretary of State for Northern Ireland