Summer Drought: Future Supply Disruption

Lord Bailey of Paddington Excerpts

Thursday 3rd September 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

We must all be aware of the reports about the excessive El Niño we are experiencing at the moment. I am sure that this winter is going to be very difficult for many parts of the world. In this country, the National Drought Group is meeting weekly. We have the working group on flooding as well. We are looking at long-term water resources management plans to ensure sustainable water supply. The Environment Agency is reviewing all the plans in this area because we need to make sure that long term we are prepared for drought, flooding and storms, all of which cause serious disruption to water supplies, electricity supplies and so on. There is co-ordinated work across government so that when we have these serious concerns about existing and future weather, we are better prepared than we have been before.

[Lord Bailey of Paddington (Con)]

My Lords, reducing consumption and leakage is expected to meet more than 65% of England’s projected water shortfall. Will the Government make executive bonuses and dividends, and future bill increases, conditional on companies meeting binding water leakage reduction targets and preventing supply interruptions?

[Baroness Hayman of Ullock (Lab)]

Water companies already have leakage targets, which they are expected to meet. I say from a personal point of view that United Utilities seems to be going like the clappers at the moment—virtually every road around our village is shut as it beavers away mending leaks. Perhaps the issues around water shortages this summer have focused water companies’ minds a bit more on the need to ramp up that work.

Thames Water

Lord Bailey of Paddington Excerpts

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The simple answer is that we are considering all possibilities and eventualities. We want to have everything on the table, because the most important thing is that we continue to maintain this absolutely vital public service.

[Lord Bailey of Paddington (Con)]

My Lords, when we eventually get to the point where we have a new regulator, what will be done to make sure it is not staffed by the people who already run Ofwat? One of the problems we have had in this whole debacle is that there is a very chummy relationship between people who are very senior in the same industry. How will the Government navigate that to make sure we do not just go back to the same old problems under a different management design?

[Baroness Hayman of Ullock (Lab)]

I am not in a position to comment on chumminess, because I do not know the people involved. The whole point of bringing in a new regulator is to improve things and get the right focus, so that we can really shake up the water industry and make sure that it is fit for the future. There is no point in bringing in a new regulator if you are just tagging the old one with a new name.