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Water Companies
08 June 2026
Lead MP
Emma Hardy
Debate Type
Ministerial Statement
Tags
EnergyEnvironment
Other Contributors: 41
At a Glance
Emma Hardy raised concerns about water companies in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Emma Hardy welcomed the opportunity to update the House on the progress made by her government in addressing issues within the water industry. She noted that while there is broad agreement on the need for change, the current status quo is unsustainable after 14 years of Conservative governance. The minister highlighted meetings with campaigners and academics to gather feedback and support. Customers have faced rising bills, underinvestment in infrastructure, supply interruptions, and pollution. To address these issues, her government took immediate action by updating water companies' articles of association to prioritise customers and the environment, established consumer panels, introduced the Water (Special Measures) Act 2025, ringfenced customer funds, banned unfair bonuses, increased penalties for polluters, doubled compensation for service failures, enhanced Environment Agency inspections to a record 10,000, and strengthened protections for vulnerable households. Additionally, she mentioned ongoing reforms through a clean water Bill aimed at resetting the sector and ending decline cycles, alongside support for expert panels to provide independent advice.
Clive Lewis
Lab
Norwich South
Question
Lewis expressed his concerns about systemic failures in the water industry due to profit-driven priorities, highlighting raw sewage pollution, deaths from E. coli, increased bills and executive compensation despite bonus bans, and questioned how many more failures will be tolerated before considering nationalisation.
Minister reply
Emma Hardy acknowledged Lewis's passionate stance on the issue and agreed with him regarding the failure in building reservoirs. She noted her support for new ownership models such as not-for-profit entities and emphasised that a transparent process to assess these requests would be introduced.
Question
Hudson questioned the slow progress of water sector reform since Labour's election, noting missed opportunities in the Water (Special Measures) Act 2025. He also raised concerns about Thames Water’s stability and proposed legal actions that could affect consumer bills and public finances. Hudson further asked for updates on South East Water outages during hot weather, strategic infrastructure development, and tracking of investment commitments.
Minister reply
Emma Hardy listed significant actions taken by the government since Labour's election, including passing the Water (Special Measures) Act 2025, ringfencing customer funds, securing £104 billion in private investment for upgrades, enhancing Environment Agency monitoring powers, banning unfair bonuses and wet wipes sales, introducing criminal penalties for polluters, reforming bathing water regulations, establishing a taskforce to monitor delivery, doubling compensation for service failures, and strengthening protections for vulnerable households. She claimed that more progress was achieved in 20 months than under the previous Conservative government's 14-year tenure.
Toby Perkins
Lab
Chesterfield
Question
My hon. Friend is right to highlight the under-investment in infrastructure that leads to resilience issues. We need action resulting from higher bills and regulatory reform, such as an integrated regulator focusing on environment, customers, and public health.
Minister reply
I thank my hon. Friend for his work as Chair of the Environmental Audit Committee. He is right about under-investment in infrastructure leading to problems around resilience. We need to set resilience standards and have an integrated regulator focused on environment, customers, and public health.
Charlie Maynard
Lab
Not Provided
Question
Thames Water's systemic failures, such as breaching licence conditions and failing to inform the Government of control changes, require special administration to be mutually owned and operated for customers' interests.
Minister reply
I thank the hon. Member for his question but I think it is a misrepresentation to say that the Government are doing deals. The Government work closely with Ofwat evaluating consortium proposals, ensuring best interests of customers and environment.
Helena Dollimore
Lab
Hastings and Rye
Question
Southern Water's failures in Hastings have made people sick and damaged local businesses. What more can be done to regulate better?
Minister reply
I thank my hon. Friend, who continues to campaign impressively on this issue. We are looking at a transparent process for new models, including mutuals and not-for-profits, before any change goes ahead.
Jeremy Hunt
Con
South West Surrey
Question
Is the root problem a failure of regulation over the last 25 years? We need to regulate differently for lower prices and more investment.
Minister reply
I thank the right hon. Gentleman for his question. I accept the premise—we need tougher and more effective regulation because it has failed—but I would have thought he might have had an opportunity to act during previous roles.
Chris Hinchliff
Lab
Not Provided
Question
The end result of economic policy based on unlocking private capital in the water sector shows bankruptcy, environmental devastation, and non-existent infrastructure. What conversations is the Minister having with colleagues about learning from this failure?
Minister reply
I thank my hon. Friend for his passionate work on over-abstraction damaging our environment and nature. The water delivery taskforce looks at planning and infrastructure to make effective change.
Roger Gale
Con
North Thanet
Question
Water companies should be allowed to act as consultees in planning applications, and every new house built should have a grey water system.
Minister reply
I thank the right hon. Gentleman for his question and point about grey water systems being used. The taskforce looks at building homes with the right water infrastructure, but retrofitting properties in Cambridge shows some progress.
Yuan Yang
Lab
Not Provided
Question
My constituents do not feel treated fairly by Thames Water and Ofwat should reject current deals letting polluters off the hook. Does my hon. Friend agree that fairness means the polluters pay, not customers?
Minister reply
My hon. Friend is right to request improvements in exchange for bill increases. Companies must inform their customers of where money is going, especially Thames Water who failed to provide information requested.
David Chadwick
Lib Dem
Not Provided
Question
Local children became ill after swimming in polluted rivers due to sewage dumping by water companies. Will the Minister listen to Liberal Democrats' calls for publishing volume and concentration of sewage from emergency overflows?
Minister reply
The cost and time spent on installing monitors could be better used preventing such issues, focusing instead on delivering storm overflow reduction plans with £60 billion investment across England by 2050.
Question
Several barriers to taking water back into public ownership have been mentioned, but the impact on pensions and cost concerns have been addressed. What will it take for the Government to consider nationalisation?
Minister reply
I know how much my hon. Friend cares about this issue; however, the White Paper contains a process by which different forms of ownership can be looked at, including not-for-profits and mutuals rather than full nationalisation.
Mims Davies
Con
Eastleigh
Question
Given ongoing issues with Southern Water and South East Water, such as water outages and lack of confidence in infrastructure planning, does the Minister think proper joint working and firmer accountability through partnership would be better for constituents struggling with higher bills?
Minister reply
I have huge sympathy for the hon. Lady’s constituents; we should support companies to sort out a proper legal agreement over bulk supply of water from Southern Water to South East Water, and if they fail their duty under the 1991 Act, action will be taken.
Question
My constituents are concerned about Thames Water's failure to address pollution despite rising bills. Can the Minister assure me that she is putting more effort into supporting the Environment Agency in monitoring water and enforcing legislation?
Minister reply
I pay tribute to my hon. Friend’s work on banning plastic-containing wet wipes; river pollution leads to ocean problems, and I am keen to ensure all aspects of this issue are effectively addressed.
Question
Thames Water has not fixed the sewage system in Thames Ditton for over a decade. With recent rain leading to human waste flooding homes and schools, should the Government consider putting Thames Water under special administration?
Minister reply
The hon. Lady raises an awful case; I am more than happy to meet her and look into it, as there is no excuse for sewage ending up in primary schools or streets.
Question
Thames Water has gone from bad to worse with frequent sewage on the streets of Ilford. When will enough be enough and we take control back from Thames Water?
Minister reply
I thank my hon. Friend for his question, which provides another example of system failure; he is right to feel angry about it. The Government are working closely with Ofwat regarding Thames Water and stand ready for every eventuality.
Julian Lewis
Con
New Forest East
Question
Does the Minister think any new reservoirs could ever be built without direct Government intervention?
Minister reply
The right hon. Gentleman raises an important point; through the taskforce, we are looking at all potential barriers to getting stuff done and how we can remove them so that we can get on with it.
Salford and Eccles
Question
Given empirical research showing public ownership would lower financing costs, improve accountability and pay for itself within seven years, why are the Government still prepared to socialise risks rather than bring water back into public ownership?
Minister reply
I reiterate my focus on dealing with problems effectively; while nationalisation cost concerns exist, we have £82.7 billion of outstanding debt. We need a transparent process for looking at not-for-profit mutuals and other models.
Question
DEFRA’s suppressed report highlights risks of ‘catastrophic failure’ due to climate change, water scarcity, and inadequate infrastructure investment. Can the Minister assure that the Bill will require companies to build long-term resilience into reservoirs and waste systems?
Minister reply
The hon. Gentleman raises an important point; we need clear resilience standards fit for future climate changes in terms of overheating and flooding.
Alex Sobel
Lab
Leeds North West
Question
Yorkshire Water is flushing sewage into rivers, with children getting ill from swimming there. With £50 million paid to shareholders last year despite debt more than four times revenue, what financial studies has the Minister done on Yorkshire Water’s viability?
Minister reply
My hon. Friend is right; Sir Jon Cunliffe’s commission addressed whether it would be appropriate for the Government to set a level of debt that companies cannot go beyond because current levels are unsustainable.
Question
South East Water faces issues due to cold and heat, with leadership changes necessary but not sufficient. Can the Minister give an update on how recruitment is going for successors and what role the regulator and Department will play?
Minister reply
The hon. Lady wrote to me about her constituents' difficulties; the regulator will take a close interest because South East Water faces non-compliance with its licence due to Moody’s downgrade.
Clive Efford
Lab
Eltham
Question
Parents from my constituency who went to the south coast during the half-term week described how they would not let their children swim in the sea. These are not necessarily beaches that are deemed to be unsafe, but such is the loss of confidence in our water industry that they reacted in that way. There must come a time when we say that we cannot allow water companies to continue to perform in the way that they have consistently been performing, and there must be a way of separating off the debt from the responsibility for running the water companies so that we can take the responsibility of supplying water and leave those companies, who have done extremely well out of the industry, to pay off their own debts.
Minister reply
As summer comes, we all want to be enjoying our beaches, going for a swim, having a paddle and not having to think about checking an app to see whether they are polluted. My hon. Friend and his constituents are right to feel angry about the current situation. We have told companies that in delivering their storm overflow reduction plan, they must prioritise bathing waters and chalk streams to begin with so that we can make those as safe as possible. Our reforms to bathing waters will help clean them up more quickly, because we want everybody to go out and enjoy the great British seaside this summer.
Question
I refer members to my registered interest as chair of the all-party parliamentary group for infant feeding and inequalities. With water scarcity prevalent across the south-east and poor management of water companies leading to outages across the south, will the Minister consult with her colleagues in the Department of Health and Social Care to find a route to put new mothers on to the priority services register automatically, because for formula-fed babies there is no option other than a clean water supply?
Minister reply
That is a hugely important issue. I have already begun to have some conversations, but those were about pregnant women, who obviously should be on the priority services register. There are concerns, as people can imagine, about data sharing and giving permission, but this is a really important point because pregnant women will fall in and out of being a priority, as will formula-fed babies. This is quite tricky because of the problems around sharing information, but it is on my agenda.
Emma Lewell-Buck
Lab
South Shields
Question
For over a decade, I have worked with campaigners in South Shields to stop sewage dumping in our sea. We are still waiting for Northumbrian Water’s compliance plan that was promised to us last year. The industry is broken. Introducing regulations and penalties and blocking bonuses is clearly not working. Will the Minister explain why, despite acting on rail, energy and other industries, the Government are not acting on the strong expert evidence and calls from the public and campaigners to nationalise the water industry?
Minister reply
My hon. Friend and her constituents have had a terrible time dealing with sewage pollution. I know from the meetings that we have had together with her constituents that it is not good enough that the promised plan was not delivered, and I will urgently follow up to find out what has happened with it. As I have mentioned, in the White Paper we have a transparent process to look at various not-for-profit models.
Question
Southern Water is preparing to dump sewage on a beach in Bembridge, on the Isle of Wight, in a new location. The Environment Agency says that that is okay because there is an old combined sewer overflow pipe there, notwithstanding the fact that it has not been used in decades. Does the Minister agree that that is unacceptable? If she does, what assistance can she and her Government provide to stop this from happening?
Minister reply
The hon. Gentleman raises an important point. I would be happy to look into it and get back to him. If he wants to have a meeting with me to discuss it further, we can make that arrangement.
Question
I thank my good friend, my hon. Friend the Member for Norwich South (Clive Lewis), for all his work on this issue to protect the environment and customers. My local supplier is United Utilities and I receive vast amounts of correspondence about its poor performance. To provide a couple of stats, 50.6 litres of water are lost per day per person in the United Utilities network through water leaks, which is the second highest after Thames Water, and in the past five years the average annual water bill for United Utilities customers has gone up approximately 51.6%, while private shareholders in the water industry tend to be doing quite well for themselves. May I urge the Minister to support public ownership of the water industry?
Minister reply
My hon. Friend cares about this issue and has raised it with me before. He is right to be angry about the issue of leakage, because water that people are paying for is ending up leaking and in the wrong places. We are tracking that leakage target through the water delivery taskforce. When we look at how we ensure that we have the water that we need for houses, growth, the environment and everything else, tackling leakage is one of the core things on which we can take action, and it is something I am committed to doing.
Dwyfor Meirionnydd
Question
Diolch yn fawro iawn, Dirprwy Lefarydd. Local people are appalled that there were nearly 95,000 hours of sewage pollution in Dwyfor Meirionnydd last year, to the point where there are dedicated local groups in the constituency. I must mention Forum Llyn Padarn who stepped in to monitor water quality in the magnificent glacial lake in Llanberis, home of the rare Torgoch char. However, we cannot rely on citizen scientists to fix the system in its entirety. What update can the Minister give me on the UK Government’s White Paper plans to devolve further water powers to Wales, so that we have the means to establish a separate independent economic regulator, and further prioritise sustainable water management over commercial interests?
Minister reply
The right hon. Lady raises an important point, and that lake sounds very beautiful. Conversations are ongoing with the new devolved Government. She knows that the UK Government support devolution wherever we can. The new Welsh Government have only recently been elected, but I assure her that conversations are happening right now about how we will set things up so that Wales will have a separate regulator from England.
Helen Hayes
Lab
Dulwich and West Norwood
Question
My constituents have been profoundly failed by Thames Water for many years, with frequent leaks and bursts, inadequate investment in our infrastructure, clogged up roads and, to add insult to injury, skyrocketing bills. Thames Water is a failing organisation. Will the Minister confirm that the Government will not accept a proposal to exempt Thames Water from fines for four years? It should be held to the same standards of accountability as the rest of the industry and if it fails, the Government should step in to place it in special administration, with a view to bringing it back under public control.
Minister reply
Again, my hon. Friend is a formidable campaigner on this issue; she has raised it with me on many occasions both in public and in private, and she is absolutely right to do so. Yes, the rules apply to everybody. The previous Secretary of State stood at the Dispatch Box and made that commitment, and I will make it again. Rules apply to everybody, and that has never changed and will never change under this Government. We are prepared and ready for every eventuality if that is needed.
Question
South West Water has pleaded guilty to illegal sewage dumping across my constituency, including at Bodmin and Harlyn. It will likely get yet another fine and a slap on the wrist—a cost of doing business. The Water Minister kindly met me recently, but she has confirmed in writing that vital sewerage upgrades will not take place until 2030. If the Government will not push South West Water to speed up its investment plan, will the Minister support my efforts to hold it to account through a group action legal claim?
Minister reply
I understand why the hon. Gentleman feels frustrated about this issue. Each company will set out through the price review exactly what it will deliver and when, and make priorities. As I have already mentioned in the House, we are prioritising bathing waters, chalk streams and various other areas at the moment, but he is well within his rights as a Member of Parliament to campaign for his area to be moved up and be given greater priority.
Question
Since 2003, my constituent has suffered multiple incidents every year of raw sewage flooding into his garden. United Utilities is disputing with him how the guaranteed standards scheme works, and he is not receiving adequate compensation. His golden wedding anniversary was completely ruined when he had family over and the garden was literally full of excrement. This situation could not be any worse—it is an absolute disgrace. Although we have strengthened the regulations, our current system is not sufficiently economically damaging to UU to force it to take actions that would solve the problem for my constituent. Will the Minister please meet with me and my constituent to talk to him about this issue?
Minister reply
I would, of course, be happy to meet with my hon. Friend.
Question
The Minister will know from our conversations that sewage pollution is a regular problem in Exmouth and Exeter East. However, the Lib Dems on East Devon district council propose to build tens of thousands of new homes, and I do not have faith that South West Water will keep pace with all the new development. We have been bitten before: a new town was built in Cranbrook, and the corresponding sewage treatment network was never built. Will she work with me and the Housing Minister to ensure that we apply a magnifying glass to any plans and push back strongly if South West Water cannot keep pace with delivery?
Minister reply
The hon. Gentleman is quite right. Where we are building homes, we need to ensure that they have not only an adequate water supply, but an adequate waste water supply. We are looking at that in the water delivery taskforce, and I am happy to look at the exact example that he has given.
Richard Burgon
Lab
Leeds East
Question
Greedy privatised water companies have caused huge harm by treating our rivers and seas like an open sewer. They have been ripping off the public while doing that and, at the same time, they have handed nearly £90 billion over to shareholders since privatisation. Does the Minister agree that, as is being done with the railways, the water companies need to be taken into public ownership so that they can serve the public good and be run for the public good, not for private profit?
Minister reply
My hon. Friend is right to passionately defend customers and to be angry about the fact that money has been diverted and not used in the most effective way, which it should be. As I have mentioned, we are looking to set up a transparent process to look at various ownership models for water, such as a not-for-profit model.
Caroline Voaden
Ind
Brixham
Question
Last week, South West Water was fined nearly £2 million after pleading guilty to supplying water unfit for human consumption in Brixham. The hon. Member believes that the fine does not reflect the impact on residents and the economy, and asks if it is time to change the ownership model of the water industry so that customers are prioritised over profit.
Minister reply
The Minister acknowledges the record fine and pays tribute to the Drinking Water Inspectorate's work. She states that they are considering a transparent process for water companies wishing to transition to different models, such as not-for-profit.
Lee Barron
Lab
Barnsley East
Question
The hon. Member commends the Minister for outlining measures but argues that the model is broken and requires a new one putting people before profits. He questions if it is time to bring water back into public ownership, serving people rather than paying dividends to shareholders.
Minister reply
My hon. Friend is right to be angry at the service many customers face for years, but she also highlights significant changes since coming into government. The Minister mentions a transparent process for models such as not-for-profit.
Greg Smith
Con
Bolton West
Question
The hon. Member is concerned about the dysfunctionality in how the planning system interacts with water companies and suggests that if the Government proceed to build homes, statutory consultee status should be given to water companies for all planning applications.
Minister reply
While the Minister agrees with the hon. Member's points regarding the planning system, she emphasises the need to build homes for people living in overcrowded accommodation. She mentions working through the water delivery taskforce.
Cat Eccles
Con
Cannock Chase
Question
The hon. Member raises concerns over 300,000 sewage spills into waterways and asks how success will be measured in protecting the environment from such incidents.
Minister reply
My hon. Friend is raising an important issue; under this Government, the Environment Agency has increased inspections significantly to prevent similar issues.
James MacCleary
Con
East Grinstead
Question
The hon. Member expresses concerns about communication from South East Water during outages and again asks for statutory consultee status for water companies in the planning system.
Minister reply
The Minister agrees that communication was not good enough, supporting work with local resilience forums to improve it. She mentions focusing on building homes needed by families rather than putting extra pressure on the water system.
Emily Darlington
Lab
Wellingborough
Question
The hon. Member raises issues with Anglian Water regarding lack of water during a heatwave and insufficient water pressure for fighting fires, urging accountability from failing companies.
Minister reply
My hon. Friend is right to be cross about problems with water pressure but emphasises the need to build homes required by families.
Richard Foord
Con
Dover
Question
The hon. Member questions how the Minister upholds the polluter pays principle given that South West Water, despite significant revenue, received a relatively small fine for its pollution incidents.
Minister reply
That was a record fine but the hon. Gentleman is right about serious issues; under this Government, they can recoup investigation costs from companies to ensure real accountability.
Josh Dean
Con
Hertsmere
Question
The hon. Member expresses anger at Thames Water's pollution of the River Stort and asks what can be done to speed up progress in protecting rare chalk streams.
Minister reply
My hon. Friend is right; under current rules, they prioritise chalk streams and bathing waters for public safety and environmental protection.
Clive Jones
LD
Wokingham
Question
In my constituency, sewage was spilt from the Arborfield treatment works 28 times last year, and in the last few days sewage has poured into the Emm brook. Given the numerous repeated sewage spillages in Wokingham and across the country, will the Minister back the Liberal Democrat proposals for a mutually owned public benefit model for water companies, focusing investment on the environment, customers and replacing and repairing infrastructure rather than on lining the pockets of water company shareholders and senior managers?
Minister reply
The Government are, of course, determined to tackle the sewage scandal head-on and clean up our rivers, lakes and seas for good. We want to address the root cause of pollution. We are shifting the focus to a dual approach, driving water company action and pre-pipe solutions, tackling sewer misuse and pushing for better rainwater management. These changes are more sustainable, enabling growth, delivering more benefits, reducing flood risk and protecting biodiversity. We will hold companies to account for the promises made in respect of their storm overflows discharge reduction funds.
Shadow Comment
Clive Lewis
Shadow Comment
Clive Lewis thanked the minister but criticised the systemic failures within the privatised water industry. He highlighted issues such as raw sewage in rivers and seas leading to deaths, increased bills for consumers, executive compensation despite bans on bonuses, and overall profit-driven priorities rather than public interest. Lewis argued that these problems are inherent in a market-based system and questioned how many more failures would be tolerated before the government considers nationalising water services.
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