Health & Beauty
13 July 2025
Ofwat is to be replaced by one single water regulator responsible for the entire water system, the government has announced.
In the biggest overhaul of the water sector since privatisation, Ofwat will be abolished and its functions will be merged with water functions across the Environment Agency, Natural England and the Drinking Water Inspectorate to form a new single, powerful regulator.
In a speech at Kingfisher Wharf, Steve Reed, the Secretary of State for the Environment, pledged to strengthen regulation, clean up the country’s s rivers and protect the public from soaring water bills.
There are currently four separate regulators responsible for the water industry, which has created a complex, tangled system of confusion. It is a merry-go-round of regulators who blame each other for breaking this country’s water system.
Ofwat has failed customers, allowing water companies to mismanage billions of pounds of customer money while water companies paid out huge dividends and bonuses.
‘Our water industry is broken. That is why this Government will fix our broken regulatory system so the failures of the past never happen again.
‘The Government will abolish Ofwat. In the biggest overhaul of water regulation in a generation, we will bring water functions from four different regulators into one.
‘A single, powerful regulator responsible for the entire water sector will stand firmly on the side of customers, investors and the environment and prevent the abuses of the past.
‘It will provide the clarity and direction required for a strong partnership between Government, the sector and investors to attract billions of pounds of new investment.’
STEVE REED
Environment Secretary
One powerful regulator will now be responsible for the entire water sector, in a bid to restore public faith and investor confidence in our water industry.
The current fragmented approach of four separate regulators splits up economic, environmental and drinking water regulation. This complex web of regulators has led to contradictory and competing priorities.
The reforms will ensure all regulation is in lock step to deliver for customers and the environment, bringing all water regulation under one roof.
The proposals will be consulted on this autumn and form the basis of a new Water Reform Bill.
The announcement follows a bold, personal commitment from Environment Secretary Steve Reed to cut sewage pollution from water companies in half by 2030.
This is the most ambitious sewage target the government has ever set, and the goal is to make our rivers the cleanest since records began.
‘Families have watched their local rivers, coastlines and lakes suffer from record levels of pollution.
‘My pledge to you: the Government will halve sewage pollution from water companies by the end of the decade.
‘One of the largest infrastructure projects in England’s history will clean up our rivers, lakes and seas for good.’
STEVE REED
Environment Secretary
The government has begun rebuilding the entire water network through one of the largest infrastructure projects in the country’s history.
£104 billion is being invested to upgrade crumbling pipes and build sewage treatment works across the country, so communities can once again take pride in their beaches, rivers and lakes.
These reforms build on action taken by the government over the past year to clean up England’s rivers, lakes and seas.
Customer bills earmarked for investment must now be spent on new sewage pipes and treatment works – not on shareholder payments or bonuses.
Over £100m is being invested into local clean-up projects in communities.
The Environment Agency received a record £189 million to fund hundreds of enforcement officers to inspect and prosecute pollution water companies.
The law has been changed so that regulators can recover the cost of enforcement activity, ensuring that the polluter pays. This builds on the increase in water company inspections.
Wet wipes containing plastic have been banned in England to reduce microplastics in our waters.
Unfair bonuses for 10 polluting water bosses have been banned this year, and prison sentences threatened for law-breaking executives.
Alongside the creation of a new single regulator in England, the government will work closely with Welsh government to devolve economic regulation of water to Wales.
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