Water Companies

Debate between Clive Lewis and Emma Hardy

Monday 8th June 2026 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

(Urgent Question): To ask the Secretary of State for the Environment if she will make a statement on the performance of the water sector.

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

I welcome this opportunity to update the House on the progress the Government have made on this important issue. In these divisive times, there are few topics that unite all of us in this House—but water does. We all agree that the status quo cannot continue. Following 14 years of Conservative failure, this Labour Government are turning it around, but there is still lots more to do.

I have been grateful to meet with many passionate campaigners and Members of this House. Recently, that included an engaging meeting with my hon. Friends the Members for Norwich South (Clive Lewis) and for Shipley (Anna Dixon). Just last week I met with campaigners from Save Windermere and academics from the People’s Commission on the Water Sector.

People are right to be angry about the problems facing the water industry. Customers have been let down by rising bills, under-investment in creaking infrastructure, supply interruptions and unacceptable levels of pollution in our rivers, lakes and seas.

That is why this Government took action on day one by updating the water companies’ articles of association—the foundational legal documents that outline their internal rules and purpose—to put customers and the environment at their heart. We also established powerful consumer panels to give customers a voice. In week six of this Government, we introduced fundamental reforms through the Water (Special Measures) Act 2025, ringfencing customers’ money, banning unfair bonuses, introducing criminal liability for polluting water bosses and creating automatic penalties for wrongdoing. Within a year in office, this Government had changed the guaranteed standards of service, doubling compensation for customers when things go wrong. Following that, we gave the Environment Agency more money and more power to monitor water companies, enabling it to deliver a record 10,000 inspections. After that, we strengthened protections for vulnerable households by changing the reforms around WaterSure to ensure that vulnerable people did not face excessive bills.

No one solution is going to fix the whole water industry. Since I have had the honour and privilege of being in this position, my focus has been on finding the quickest and most effective way to deal with each of those structural challenges. That is exactly why this Government are delivering the once-in-a-generation reform through our clean water Bill to reset the water sector and end the cycle of decline. And because the Government believe in experts, we have also supported the chief medical officer in bringing together a wider expert panel through the public health water taskforce, providing independent and technical advice on risks, alongside the fantastic work done by the Department for Environment, Food and Rural Affairs’ own scientific adviser, creating the science advisory council to look at what we can do around water.

We will deliver on our promise to clean up our rivers, lakes and seas not just today, but for generations to come. These changes are designed to address the structural challenges in the sector and to deliver a cleaner, more resilient and more accountable water system for the future.

[Clive Lewis]

I thank the Minister both for her response and for putting up with me—I am a bit of a broken record on this issue. We are all well aware that water is essential to life itself—to food, industry, nature, housing, energy, and now even the data centres powering the supposed AI revolution—and yet we have handed a monopoly where no competition is possible to companies, many owned overseas, whose overriding priority is profit. The result is systemic failure, with not one major reservoir built and the old ones sold off. That is why we were back in the Chamber last week over South East Water and the drought outages, just weeks into the summer.

Raw sewage has poured into our rivers and seas—3.5 million hours of it in 2024 alone—fouling beaches where children swim. It is why eight-year-old Heather Preen died after contracting E. coli from raw sewage, and why thousands of our constituents are made sick every year. When public anger saw the Government ban bonuses, water execs raised their salaries and rebranded the payouts “retention payments” and that comes on top of the £78 billion to shareholders and £60 billion borrowed, our bills up 40%, and 30p in every pound we pay servicing water companies’ debts instead of fixing pipes.

This was never a market failure. Instead, it is the market working as designed—profits out, sewage in, cost of living up and security of supply decimated. Surely the Minister understands that we can no more regulate privatised water companies than regulate the tide. How many more failures, inquiries and deaths before the Government accept that these problems are systemic and give the public the option of taking their water back?

[Emma Hardy]

I thank my hon. Friend for his question. He is right that he has been passionate about this matter for a long time. We have known each other a very long time, and—I have said this to him before—I genuinely admire and respect his passion. I know what it means to him. In fact, he was the person responsible for bringing Julie, Heather’s mum, to meet me when they came to Parliament for a premiere of “Dirty Business”, which I found really moving.

My hon. Friend knows I am going to agree with him on reservoirs. It is shameful that we have not had one built. Our climate is changing: we are facing drought in the summer and we have too much rain in the winter, and yet we cannot seem to hold it. That is a fundamental failure.

He knows my thoughts on South East Water, too, as well as my feelings about competition, which is why I think we should be introducing more new appointments and variations. As I said last week, where a water company might want to transition to a new ownership model such as not for profit, we are committed to developing a transparent process to look at whether that request should go ahead—a process that has never existed before.

South East Water: Disruption of Supply

Debate between Clive Lewis and Emma Hardy

Wednesday 3rd June 2026 Commons Chamber

[Emma Hardy]

On resilience, one of the things that we want to introduce for the first time is asset standards for water company assets. At the moment, those do not exist; there is no rule or criterion for the standard to which water companies need to maintain their water treatment work, waste water treatment work or pipes, or for how much leakage is acceptable. With the new regulator, we want to introduce those asset standards, which say that companies have to maintain their assets to a certain standard. That should help change things and basically build against what we have seen—admittedly not on this occasion; on this occasion, the company ran out of water—in other cases where infrastructure falls over because it is not adequately maintained and looked after.

That is why the no-notice inspections matter; with those MOT-style inspections, as I refer to them, people from the Environment Agency can go in with no notice, check the assets, mark the water company on them and then give it an enforcement notice to say that it has to improve its assets up to a certain standard. The situation will not be fixed overnight, but having that goal for where we need to get to will help to prevent infrastructure from falling over because it is not properly looked after.

[Clive Lewis (Norwich South) (Lab)]

South East Water is one of a number of privatised water companies that are responsible for selling off 35 reservoirs since 2017, and those companies have not built a single one since privatisation that is complete. We understand that this Government are committed to a regulatory approach to dealing with this issue, but that is akin to putting a complaints box on the Titanic. It is a nice idea, but I do not think it will work. Ultimately, private water companies’ first priority is private shareholders—many of them overseas—who do not give a damn about our constituents. This situation will keep happening until water is put back under public control, in public hands, and owned by the public.

[Emma Hardy]

I know how passionately my hon. Friend cares about this issue, and I genuinely pay tribute to him for championing this issue and for the work he has done in Parliament to bring people together. As I have mentioned, the White Paper talks about setting up a transparent process to look at whether a company should transition to a different model, including a not-for-profit, if that was what it wished to do.