Future of Thames Water

Sean Woodcock Excerpts

Tuesday 14th July 2026 Commons Chamber

[Emma Hardy]

I have heard quite a lot from the hon. Gentleman, so I would be most grateful if he would not mind giving someone else a chance. We are looking at introducing the performance regime for the same reason, because we want to ensure that we can intervene early to stop the abject failure that we saw under the coalition Government.

[Sean Woodcock (Banbury) (Lab)]

Every week in my surgeries I hear about the consequences of Thames Water’s failures. An elderly widowed constituent was left without running water after it failed and botched the installation of a water meter, and she was forced to shell out hundreds of pounds on an emergency plumber to remedy the situation. Will the Minister confirm that she understands the anger of constituents like mine with regard to Thames Water and its continued failing? Will she confirm that she will keep all measures under review?

[Emma Hardy]

It is true that I feel angry on behalf of all our constituents who have been so badly let down by the system that we inherited, and that is exactly why we have taken the action that we have. There is, of course, lots more to do—nobody is saying there is not—but we have to acknowledge the dire straits and the mess that we inherited. We are going to bring forward a clean water Bill to deliver on our promise to clean up our rivers, lakes and seas, and not just for today but for generations to come. The reforms will create a single powerful water regulator to act, and we will ensure that it has teeth in the way that the current regulator does not.

Turning to some of the issues raised by the hon. Member for Witney about the consortiums proposal, regarding the recapitalisation proposal being negotiated between Thames Water, London & Valley Water Consortium—a group of Thames Water’s creditors—and Ofwat, I reiterate that this Government will always act in the national interest. Before I turn to the proposal itself, it is important to be clear about the respective roles and responsibilities of the parties involved, because there is so much misinformation and misunderstanding out there. I welcome the opportunity to at least introduce a few more facts into the argument about the proposals.

Ofwat, as the independent economic regulator, is responsible for assessing that proposal and deciding whether it meets the relevant regulatory and statutory requirements, including whether it is appropriate to take the proposal forward for consultation. However, section 2 of the Water Industry Act 1991 places a duty on both Ofwat and the Secretary of State to exercise their respective relevant functions in the manner best calculated to further or achieve certain objectives. This includes protecting customers, securing the proper delivery of water and sewerage services, ensuring that companies can finance those services and that statutory obligations are properly carried out.