Water White Paper

Nusrat Ghani Excerpts

Wednesday 21st January 2026 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Emma Reynolds)]

With permission, Madam Deputy Speaker, I would like to make a statement on the publication of the Government’s water White Paper, “A New Vision for Water”. The paper sets out once-in-a-generation reforms, putting consumers and the environment first and building a water system fit for the future.

For too long, the last Conservative Government turned a blind eye—perhaps that is why there is not a single Conservative Back Bencher in the Chamber to discuss this issue. They neglected the needs of people and the environment. The result: a whole-system failure, companies profiting at customers’ expense, vital infrastructure left to crumble, record levels of pollution in our waterways and public trust destroyed. It is no wonder that none of them—we may have one of two—has turned up to sit on the Back Benches.

This Government inherited that terrible failure, and we are not shying away from it. Every family in this country deserves clean water from their taps, seas safe for their children to swim in, and bills that are fair and affordable. This Government is turning the page on that Tory failure. Our goal is simple: a water system that delivers safe and secure water supplies, better water quality and a fair deal for customers and investors.

Within weeks of coming into office, this Government asked Sir Jon Cunliffe to lead an independent water commission. Sir Jon met over 150 stakeholders, including environmental groups, investors, Members of both Houses, and local communities. His call for evidence received more than 50,000 responses—there is much more interest from people out there than from the Conservative party. I thank Sir Jon and all those who contributed, including right hon. and hon. Members. The White Paper sets out our response to his recommendations.

The Cunliffe review was vital, but we did not wait for its conclusions to act. In our first year in office, we laid the foundations for the transformation that this White Paper sets out. We passed the Water (Special Measures) Act 2025 to give the regulator the power to ban bonuses for polluting water bosses and issue automatic fines for pollution; we ringfenced the money from consumers’ bills, so that it can be spent only on fixing and upgrading infrastructure and improving water quality, not diverted to pay bonuses or dividends; we secured an historic £104 billion of private sector investment to rebuild the water network; and we established the brand-new water delivery taskforce to get spades in the ground, fast-track the delivery of new infrastructure projects and drive economic growth.

This White Paper builds on those strong foundations and sets out a new vision for water in this country. Our reforms deliver three fundamental shifts. The first is the shift from fragmentation to co-ordination. Today, responsibility for water is scattered across four different regulators. The result is confusion, duplication and regulatory gaps. We will change that. We will abolish Ofwat and create a new and more powerful regulator, integrating economic and environmental regulation. We will hold water companies to account by moving away from a system of self-monitoring, in which water companies have been marking their own homework, to a more proactive and preventive approach.

There will be nowhere to hide for poorly performing water companies. We will introduce an MOT approach for water company infrastructure, requiring maintenance checks on pipes, pumps and water treatment works; we will introduce a chief engineer and ensure that there is engineering capability in the new regulator, so that decisions are grounded in practical understanding; we will take a new supervisory approach, holding companies to account in detail and recognising the different challenges they face; and our new performance improvement regime will give the regulator the power to step in faster and put things right earlier. That is prevention-first regulation.

However, regulation alone will not clean up our rivers, lakes and seas. We need everyone with a stake in our waterways to be pulling in the same direction. New reforms for regional planning will bring councils, water companies, farmers and developers together to tackle local pollution, manage water resources and support housing growth. That will strengthen community voices in the water system and drive greater use of nature-based solutions.

The second shift is from corporate interest to public interest. We must never lose sight of who this reform is for: customers and the environment. We will introduce an independent water ombudsman to resolve consumer disputes fairly. We will keep bills affordable through the wider roll-out of smart meters to help those who need it most. There will be a new water efficiency label on every appliance, so that when customers buy a washing machine or a shower, they will know exactly what it will cost not just to buy it, but to run it—to help bring their bills down. We are also cracking down on pollution at its source. We will tighten agricultural standards, including on sludge spreading. We will double funding for catchment partnerships, harnessing the power of nature to protect our rivers.

The third shift is from short-term thinking to long-term planning. For too long, the water sector has lurched from one five-year price review to the next, with no clear picture of where we are headed. We will publish a transition plan to provide a clear, simple road map for water companies, investors and the regulators. The plan will set out how the next price review will deliver those reforms, how we drive better co-ordination between existing regulators during the transition, and how we will make leadership appointments at the earliest opportunity to the new regulator’s board, including a chair-designate.

For too long the previous Conservative Government turned a blind eye to water system failure. Infrastructure was neglected, pollution went unchecked and public trust was betrayed. This White Paper draws a line under that era. It lays the groundwork for our upcoming water Bill and puts us on a new path; a path where water companies act responsibly, where customers get the service they deserve, where investors can invest with confidence, and where we can all enjoy clean rivers, lakes and seas. The British public voted for change, and we are delivering that change by building a system fit for the future. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State for Environment, Food and Rural Affairs.

--- Later in debate ---

[Emma Reynolds]

I agree with my hon. Friend. That is why the main focus of our reforms is to create a single, more powerful and integrated regulator. At the moment, as I said in my statement, we have duplication as well as gaps. We have consumers who are not being served well, so we need a regulator that gets a grip on the investment in maintaining our water infrastructure and on bearing down on pollution incidents. We have already made a start on that, but the new regulator will have more teeth and more power to do that. My hon. Friend is right to say that we need that single, more powerful and integrated regulator to ensure we deliver better outcomes for consumers and the environment.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Although some proposals in this White Paper are welcome, it does not go far enough to guarantee the promised fundamental reforms. Record sewage spills of over 45,000 hours were recorded in Glastonbury and Somerton last year. The public are left in the dark as the Government refuse to record the true scale of the volume of sewage dumped, rather than just the duration. Fat cat-retention payments continue as water companies evade the 2025 ban on bonuses, with the former Wessex Water chief executive officer landing a £170,000 bonus through the parent company YTL, with Ofwat apparently powerless to oppose it. Why do the Government refuse to address the failed ownership model that has allowed pollution, under-investment and profiteering to persist for decades? Will the Secretary of State listen to Liberal Democrat calls for water companies to become mutually owned public benefit corporations?

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Much shorter questions, please.

[Emma Reynolds]

Either myself or the Water Minister would be happy to meet the hon. Member. I heard about the incident of the chips on the beach. In the White Paper we are looking more broadly at other sources of pollution, including those from transport and agriculture, but we would be happy to have a meeting with him to discuss the issue.

--- Later in debate ---

[Emma Reynolds]

We will set up the water ombudsman; we need the primary legislation to do that. The ombudsman will have statutory powers and will be able to take forward consumer complaints and disputes.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Liz Saville Roberts.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn, Dirprwy Lefarydd. I would say to the Secretary of State “Cofiwch Dryweryn”, because water has always been political in Wales. The White Paper suggests that the UK Government may finally devolve additional powers over water to the Welsh Government. Considering that could have happened years ago under section 48 of the Wales Act 2017, which was delayed—incredibly—at the request of the Labour Welsh Government, can she now set a timeline for when the people of Wales will have power over our own water?