Speaking in the House of Commons on 21st July 2025, Environment Secretary Steve Reed confirmed a number of recommendations from the Independent Water Commission that government will fast track.
.jpg)
Other changes will be published in a White Paper this Autumn, which will detail the UK Government’s full response to the Independent Water Commission’s final report, and form the basis of a new Water Reform Bill.
The IWC’s report made 88 recommendations in total, in a thorough 450+ page analysis of the entire UK water system.
In Parliament, Mr Reed confirmed the abolishment of Ofwat, to be replaced by a new single powerful super-regulator responsible for the entire water sector. This new regulator will include the Drinking Water Inspectorate and water-environment related functions from the Environment Agency and Natural England. In Wales, Ofwat’s economic responsibilities will be integrated into Natural Resources Wales.
Ofwat will remain in place during the transition to the new regulator and Mr Reed said he will ensure they provide the right leadership to oversee the current price review and investment plan during that time.
Mr Reed said:
“To provide clarity during this period, I will issue an interim Strategic Policy Statement to Ofwat and give Ministerial directions to the Environment Agency, setting out our expectations and requirements. We will publish a transition plan as part of our full Government response in the Autumn.”
Immediate changes Mr Reed announced in Parliament include:
- Establishing a new water ombudsmen to help customers resolve complaints.
- Ending the era of water companies “marking their own homework” by ending self-monitoring, transitioning instead to Open Monitoring to increase transparency and help restore public trust.
- Committing to include a regional element within the new regulator to ensure greater local involvement in water planning.
- Recognising the risks investors take and, if they meet their obligations, they will see a fair, stable return on their investment.
- Signing the Government’s new Water Skills Pledge to make sure the sector has the skills and workforce it needs to deliver this vast investment.
In his closing statement, Mr Reed told the House:
“This Government was elected to clean up water pollution and ensure unacceptable water bill hikes can never happen again. We now have all the building blocks in place to make that happen. We are establishing a new partnership based on effective regulation where water companies, investors, communities and the Government will work together to clean up our rivers, lakes and seas for good.”