House of Commons · Urgent Question
03 June 2025 · 30 other contributors
Opened by Victoria Atkins Con Louth and Horncastle
Summarised by AI from the official record, so it can contain mistakes.
Victoria Atkins raised concerns about thames water 2025-06-03 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm that Thames Water remains financially stable despite KKR pulling out of its equity raise? What immediate actions will the Government take to ensure there is no disruption to water supply, considering the potential impact on 16 million residents?
Question
When did the Secretary of State learn that KKR was pulling out? What involvement did he have in phone calls over the weekend with KKR and No. 10 to rescue it? Does his plan include temporary renationalisation, and if so, from which budget?
Minister reply
I will make no apology for tackling poor behaviour of water companies under previous Governments. We are standing ready for any eventuality but not looking at nationalisation because it would cost over £100 billion and take years to unpick the model.
Question
When will the Government put Thames Water into special administration, strip out debt, and return our water system to public ownership?
Minister reply
We are not looking at nationalisation as it would cost over £100 billion from other services like NHS. We need a successful sector that works for environment, customers, and investors.
Question
Will the Secretary of State ensure those responsible for poor decisions bear costs? Is it right to move water companies to a public interest model?
Minister reply
There is a procedure for special administration, and we stand ready. The interim report by Sir Jon Cunliffe will form the basis of future legislation to fix regulatory mess inherited from Conservatives.
Question
Can my right hon. Friend say whether one of his options is preparing for putting Thames Water out of its misery without bringing debts on taxpayers or bill payers?
Minister reply
We are prepared for every eventuality, as outlined, and will take necessary action to ensure continuing supply of water.
Question
Who does the Secretary of State think that Thames Water will now turn to for support? What are the Government going to do if it cannot meet its 30 June deadline?
Question
Will the Secretary of State confirm that the Government will ensure Thames Water upgrades our sewage network in South Buckinghamshire, specifically delivering the upgrade promised for Little Marlow on time?
Minister reply
I am happy to give the hon. Member reassurance. The Government expect Thames Water to carry through on all programmes agreed as part of the last price review process.
Question
What options is my right hon. Friend considering to bring an end to the failures of Thames Water, given its long history of not meeting infrastructure needs and causing significant damage?
Minister reply
I thank my hon. Friend for her question. My right hon. Friend will have seen today's interim report from Sir Jon Cunliffe’s water commission outlining thoughts on fixing the broken regulatory system. The Government have increased compensation for constituents affected by problems.
Question
Should Thames Water, which is bankrupt and unable to meet its obligations, be put into special administration for £1? This would avoid huge rates of interest and benefit taxpayers and customers.
Minister reply
I respectfully point out that Reform did not mention the water sector in its general election manifesto. Nationalising the water sector would cost over £100 billion, taking funding away from vital services like the NHS.
Question
Given that this Labour Government has introduced measures to make polluting water company executives criminally liable and ban unjustified bonuses, does my hon. Friend agree we are seeing accountability brought back to the water sector?
Minister reply
I thank my hon. Friend for his question. His constituents will benefit from increased compensation when there are failures. The previous Government had a failing system with no accountability, so it is right that new criminal liabilities and prison time for polluting bosses have been introduced.
Question
Does the Secretary of State agree with Thames Water’s expert adviser Teneo that the ultimate cost to the Government if the company goes into special administration will be zero?
Minister reply
The point is there is a market-led solution on the table and I expect Thames Water to follow through on it.
Question
What more can the Government do to tilt incentives towards investment in infrastructure, given that water company bosses fail leaving residents to pay for sewage discharge into rivers and crumbling pipes?
Minister reply
The problems are due to a lack of investment throughout the period of the previous Government. We secured a commitment to £104 billion of private sector investment, which is the single biggest investment in our water sector's history.
Question
Can the Secretary of State use his good offices to encourage Thames Water to meet me, given that it has refused for 11 months despite my requests?
Minister reply
I agree with the hon. Gentleman; water companies should engage with MPs representing constituents' interests. I would be happy to approach Thames Water on his behalf to ensure he gets a meeting.
Question
What assurances can the Secretary of State give that infrastructure investment will continue, given concerns about water bill increases and town centre closures due to crumbling infrastructure?
Minister reply
My hon. Friend is aware of action taken through the Water (Special Measures) Act 2025 to ban unjustified bonuses water bosses were able to pay under previous governments.
Question
Why will the Government not consider bringing water back into public hands, given its obscene and fundamental failure in leaving infrastructure crumbling, high bills for residents, and shareholders profiting?
Minister reply
The problems are due to failures of governance and regulation. Nationalising would cost over £100 billion that would be taken from services like the NHS or education. It would take years to unpick ownership models with no investment leading to worse water pollution.
Question
Will the Secretary of State commit to prioritising our environment and cleaning sewage, as well as ensuring customers get a fair deal, given Thames Water's dumping of sewage into rivers in my constituency?
Minister reply
I am sure my hon. Friend will be pleased that we have launched 81 criminal investigations into water companies for pollution—a dramatic increase from the previous Government who cut regulator resources.
Question
Will the Secretary of State reiterate his commitment to visiting Teddington lock site to look at impact of proposed sewage recycling project, which may be used every two years and boost balance sheet?
Minister reply
I commit to visiting the site as requested by my constituent Ian McNuff.
Question
Does the Secretary of State think it would be beneficial to require Thames Water executives to sign up to performance-related pay?
Minister reply
That is an interesting proposal, and I hope the right hon. Gentleman will suggest it to Sir Jon Cunliffe who is currently examining ways to better regulate the water companies.
Question
Considering research from the University of Greenwich, which suggests that public ownership would be financially viable and beneficial in the long run, does the Secretary of State agree with the need for public ownership or special administration?
Minister reply
I disagree; nationalisation would cost over £100 billion, money we cannot afford to take from other essential public services. We are focused on ensuring water companies serve their customers and environment rather than lining executives' pockets.
Question
Given that Thames Water will run out of money in summer 2026, does the Government commit to taking it into special administration or risk another recess recall?
Minister reply
There are procedures for regulated companies going into special administration if needed. Currently, Thames Water is stable and we expect market-led solutions to address its financial situation.
Question
Can the Secretary of State assure me that he will take action against Yorkshire Water's recent fine and ensure water bills do not continue to rise?
Minister reply
Absolutely, we are addressing the issues caused by previous governments. We have launched criminal investigations and taken necessary actions like fines to address regulatory failures.
Question
Given 35 years of excessive profits, pollution, and rising bills under private ownership, will the Secretary of State admit that Thames Water must be publicly owned and run?
Minister reply
Water is a human right, which is why we are taking necessary steps to fix the broken water system inherited from previous governments.
Question
Does the Secretary of State acknowledge that Thames Water's commercial insecurity will lead to environmental damage and customer distress, especially in coastal areas?
Minister reply
My hon. Friend is correct; we have launched 81 criminal investigations to address failures under previous governments.
Question
Will the Government now act on calls for special administration of Thames Water, rather than continuing with failed market-led solutions?
Minister reply
The Government stand ready for all eventualities should they be needed.
Question
Given the previous lack of engagement between investors, regulators, and government stakeholders, what steps is the Secretary of State taking to resolve this issue rapidly?
Minister reply
We are working on solutions as outlined in Sir Jon Cunliffe’s interim report published today.
Question
Will the Government now act on findings of the Independent Water Commission, scrap Ofwat, and replace it with a regulator capable of ending this long-standing crisis?
Minister reply
We are working towards resetting the entire regulatory framework as outlined in Sir Jon Cunliffe’s report.
Question
What measures is the Secretary of State taking to ensure confidence in investment within the water sector, given its current state?
Minister reply
We are ensuring a robust regulatory framework as part of making the sector more investable.
Question
Why will the Secretary of State not recognise that Thames Water is financially unviable, bring it into special administration to write down debt, and ensure future service serves public interest?
Minister reply
We are addressing regulatory failures with Sir Jon Cunliffe’s report. We have secured £104 billion in private sector investment for necessary infrastructure upgrades.
Question
Will the Government agree to put Thames Water into special measures to save customers money, given its current financial situation?
Minister reply
The Government is taking necessary actions based on Sir Jon Cunliffe’s report and ensuring that regulatory measures are in place.
Question
The Secretary of State has given an impression that investigations were a direct result of Labour winning the election. This is incorrect; the investments and investigations worth £55 million started well before the election.
Minister reply
I acknowledge the correction made by the hon. Member regarding the timeline of the investigations, which I did not intend to misrepresent.
Government Response
I thank the right hon. Lady for securing this urgent question. I want to begin by making clear that Thames Water remains stable, and the Government are carefully monitoring the situation. Customers can be assured that there will be no disruption to water supply. Thames Water is a commercial entity currently engaged in an equity raise, and KKR pulled out of that process earlier today. The company will continue to work with its creditors to improve financial resilience. We expect them to fix their issues for customer interests. Government are prepared for all eventualities and can intervene through special administration if necessary. We have tackled profiteering from pollution and increased regulation on water companies.