Water White Paper

Duke of Wellington Excerpts

Monday 26th January 2026 Lords Chamber

[The Duke of Wellington (CB)]

My Lords, I very much welcome the Statement and the White Paper, as the Minister knows, and I am particularly pleased that the Statement refers in its opening paragraph to

“putting consumers and the environment first”.

We had a discussion in this House at the time of the Water (Special Measures) Bill on whether the environment was given a voice equal to that of consumers. I was always in favour of giving more voice to the environment, so I am pleased that the Secretary of State has recognised that.

I have mentioned many times in your Lordships’ House the necessity of a single, strong regulator, and I welcome this. That involves abolishing Ofwat and taking over parts of the work of the Environment Agency and other regulators. We must recognise that Ofwat over many years allowed the balance sheets of the water companies to be transformed by private equity-increased leverage. That was agreed by Ofwat without any regard to the consequences for the environment. Despite the Environment Agency always claiming that it does not have enough resources, it has considerable resources. The problem is that it never gave sufficient priority to controlling pollution in rivers and on beaches.

I have some questions for the Minister. Of course, we are all anxious to see all this put into effect. The White Paper was delayed. The Minister said that there should be some guidance later this year. I hope that there will be a new water Bill in the next Session of Parliament. Can she confirm that? Fundamentally, when can we expect to see the new regulator in operation? That is what we are all looking forward to and what the public now expect.

The Whip is making a face at me, but I think that I am allowed to ask a second question. Will the new regulator have sufficient budget to fulfil its very considerable responsibilities? We all want to see a favourable outcome to this policy in development.

[Baroness Hayman of Ullock (Lab)]

I thank the noble Duke for his broad support for the White Paper. He has been a champion of improving the situation with our water systems.

He asked about the new regulator. We intend to make formal appointments to the board of the new water regulator at the earliest opportunity. We want to get cracking with this. I am not in a position to say whether the Bill will be in the next Session or when it will come, but I reassure the noble Duke that this is a top priority for Defra. We are working very hard to bring this forward as soon as we can.

We are considering the funding arrangements that we will need, but I assure the noble Duke that the new regulator will have the power to deliver its responsibilities in full. We want to make sure that any new regulator is able to do the job and do it well.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

I can completely assure the noble Baroness that these issues are being looked at outwith these proposals. These are concerns that we are taking very seriously in the department.

[The Duke of Wellington (CB)]

My Lords, as there is still time, I will ask one further question, if the Whip will allow me. The White Paper mentions cutting leakage. The previous Government had a target of reducing leaks by 50% by 2050. It seemed to me—I asked a question in the House of the then Minister, the noble Lord, Lord Benyon—that surely that was not ambitious enough. Do this Government have an intention to change the target to something more ambitious than a 50% reduction by 2050?