Thames Water

Lord Macpherson of Earl's Court Excerpts

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I absolutely agree that it is unethical to raise money to pay yourself bonuses when you have not improved the company: all you have done is get it into more and more debt, and you have had to go into further debt to get the money out of it. I know that is one of the things that has outraged people the most, which is why we very quickly brought in the Bill that came in at the start of the last Session and why we are continuing to do everything we can to try to clean up the water industry.

[Lord Macpherson of Earl’s Court (CB)]

My Lords, I share the Minister’s frustration and welcome the Government’s efforts to grip the issue. Does she agree that, whatever happens to the ownership of Thames Water, substantial investment will be required in water in the south-east? Does she also agree that a degree of realism is necessary about how much money can be recovered from private investors, given how thinly capitalised Thames Water is? Therefore, if consumers are to be protected, it will be the taxpayer who ultimately ends up footing the bill.

[Baroness Hayman of Ullock (Lab)]

We do not want to put this on to consumers, because it just does not seem to be the right approach. The noble Lord is absolutely right that serious investment needs to take place in the water industry, not just in the south-east but right across the country. Every water company, whether it is United Utilities in the north or South East Water in the south, needs to get a grip on investment to ensure that its infrastructure is absolutely fit for the future. Where that investment comes from is something that will be discussed further, I am sure, with Ofwat.