Ofwat set to be scrapped in ‘reset’ of water sector

Ofwat, the regulator for the water and wastewater sectors in England and Wales, is set to be scrapped, following an independent commission into the industry.

The Government will establish a new, single, powerful regulator to cut water pollution in England’s rivers, and take responsibility for water functions across Ofwat, Environment Agency, Natural England and Drinking Water Inspectorate.

The commission report, led by Sir Jon Cunliffe, has been undertaking the largest review of the sector since privatisation.

His report sets out 88 recommendations as part of a ‘fundamental reset’ of the water sector.

The Environment Secretary, Steve Reed, said a new regulator would “stand firmly on the side of customers, investors and the environment and prevent the abuses of the past.”

The scrapping of Ofwat is one of 5 recommendations that the Government have announced they will be fast tracking.

The Government has said it will produce a full response to the report in Autumn, along with a White Paper which will set out what a new Water Bill could include.

Swim England and the Clean Water Sports Alliance met with the Commission in March.

The report published today references the evidence submitted by the CWSA, which called for public health reforms to better manage public health risks in water.

The report acknowledges that: “People want safer water, including for more recreational use, and there is growing public pressure for this vital part of the natural environment, our waterways and coasts, to be preserved and restored.”

Among the recommendations that aim to protect public health are:

• “A greater say for public health through strengthened Regional Water Authorities
• A more coherent approach to pre-pipe solutions, preventing pollutants reaching rivers (such as Government taking swifter action to ban wet wipes)
• A review by the Chief Medical Officers of England and Wales on the incorporation of public health into the legislative framework for water
• Stronger public health protections for water bodies that have a higher recreational or aesthetic value, that goes beyond existing bathing water locations
• A new, long-term, cross-sectoral, and systems-focused National Water Strategy for England and Wales.”

The report comes as the Environment Agency said pollution incidents by water companies rose by 60% in a year.

There were 2,801 pollution incidents in England in 2024, the highest on record, compared with 2,174 in 2023.

Philip Brownlie, Head of Public Affairs at Swim England, said:

“The Water Commission’s report contains many encouraging elements, and we’re glad to see our calls for stronger legislation to protect swimmers and other recreational water users have been acknowledged.

It’s clear they recognise the increasing public interest in accessing our waterways and the urgent need for legal safeguards to protect public health.

However, these are still just recommendations. The real test will be how the Government acts on them through a new Water Bill.”

He continued:

“The proposal to replace OFWAT with a new regulator is ambitious. But after years of persistent breaches and a lack of accountability, it’s evident the current system is no longer fit for purpose.

That said, any new body must be properly empowered and resourced—without real authority and capacity, we risk ending up in the same place.

We urge the Government to act swiftly and fully implement Sir Jon’s recommendations.”

Last week, Surfers Against Sewage and 40 organisations, including the Clean Water Sports Alliance, wrote to the Prime Minister to demand an urgent end to the sewage scandal through ‘systemic transformation of the water industry’.

Whether or not the report published today will lead to ‘systemic transformation’ is unclear.

Many believe that the fact that the Commission has not been able to address the issue of who owns our water companies, is a missed opportunity.

The Government to decide how far it is really willing to go with reform, when it publishes its response and White Paper in the Autumn.