Water Companies

Debate between Caroline Voaden and Emma Hardy

Monday 8th June 2026 Commons Chamber

[Emma Hardy]

My hon. Friend is right to passionately defend customers and to be angry about the fact that money has been diverted and not used in the most effective way, which it should be. As I have mentioned, we are looking to set up a transparent process to look at various ownership models for water, such as a not-for-profit model.

[Caroline Voaden (South Devon) (LD)]

Last week, South West Water was fined nearly £2 million after pleading guilty to supplying water unfit for human consumption in Brixham in my constituency in 2024. I do not believe that that fine does justice to the impact of the event; people became ill—some were hospitalised—and the economic impact was massive. Repeated fines, some of which are never paid, are not delivering the results that customers want to see. The Minister—a Minister in a Labour Government—says that the customer is the most important priority. Does she agree that it is time to change the ownership model of the water industry so that the customer is prioritised over profit made for overseas shareholders?

[Emma Hardy]

The hon. Lady is right to point out the record fine that was handed out for not having drinking water at an adequate standard, and I pay tribute to the Drinking Water Inspectorate and the work it has done—it does an incredible job of making sure our drinking water quality is among the best in the world. On ownership, the hon. Lady will have heard me say that we are looking at setting out a transparent process in the White Paper for water companies that wish to transition to a different model.

Oral Answers to Questions

Debate between Caroline Voaden and Emma Hardy

Thursday 19th June 2025 Commons Chamber

[Caroline Voaden (South Devon) (LD)]

5. If he will make it his policy to redistribute fines levied against water companies since November 2023 to the water restoration fund.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

This Labour Government have launched the largest ever crackdown against poorly behaving water companies. As part of this operation, Ofwat has hit Thames Water with a £100 million fine, which is the biggest in British history. I am delighted to confirm today that fines collected by regulators will be directly invested in projects, led by communities up and down the country, to clean up our rivers, lakes and seas.

[Caroline Voaden]

I thank the Minister for her answer on the water restoration fund, but it would be good to know when it will come back into action. A Liberal Democrat freedom of information request found that Ofwat has failed to force water companies to pay any fines for sewage discharge cases since 2021, despite sewage being pumped into waterways for over 3.6 million hours last year alone. Meanwhile, water company bosses earned a collective total of £20 million in the 2023-24 financial year. The water restoration fund provided valuable funds to local communities to improve water quality and river health. When will the Government stand up to the water companies, make them pay for the damage they are inflicting on our environment, and ringfence this money for communities, so that they can protect and improve their waterways?

[Emma Hardy]

I thank the hon. Lady, but with respect, the response was in my original answer. As I confirmed, the water restoration fund is continuing as planned. Successful projects have been notified, and money has been announced and given. As I have stated, all the money collected from water fines will be diverted into nature projects to help clean up our rivers, lakes and seas across the country—and yes, that money will be ringfenced.