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Thames Water: Government Support
03 April 2025
Lead MP
Luke Taylor
Sutton and Cheam
LD
Responding Minister
Rebecca Pow
Tags
Economy
Word Count: 13301
Other Contributors: 13
At a Glance
Luke Taylor raised concerns about thames water: government support in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government must support Thames Water by putting it into special administration to ensure that financial mismanagement is addressed appropriately and not passed on to future bill payers.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Sixteen million Britons are affected by the poor performance of Thames Water, which has caused environmental damage and financial strain on residents. The company's historic under-investment and operational failures have led to a significant increase in untreated sewage being pumped into waterways, affecting river ecosystems and public health. Customer satisfaction ratings are among the worst for the fourth consecutive year, with bill hikes during a cost of living crisis.
Clapham and Brixton Hill
Asks how much of the £104 million fine Thames Water has paid and questions why dividends were allowed in previous years despite measures to link them with environmental performance. Also raises concerns about nationalising water companies. Asked how much more Thames Water needs to fail before being deemed unfit for operation.
Calum Miller
LD
Bicester and Woodstock
The hon. Member agrees that Thames Water needs a reset after years of financial and operational failure, advocating for special administration to address past mismanagement without burdening future bill payers with the consequences.
Hammersmith
He criticised the Government's support for Thames Water, noting that it breaches its operating licence terms. He pointed out that Thames Water discharged nearly 300,000 hours of sewage in 2024, a failure of environmental standards. Asked for clarification on the £250 billion figure and questioned the accuracy of previous comments about Ruth Kelly's role in defending Thames Water.
Daniel Francis
Lab
Bexleyheath and Crayford
Families in his constituency have seen their water bills increase by almost £300 a year due to recent increases. He highlighted the constant road closures caused by poorly maintained infrastructure and urged for further action to ensure Thames Water stabilises prices.
Emma Hardy
Lab
Kingston upon Hull East
Defends the government's actions on water reforms, noting cross-party amendments were accepted in the other place despite claims otherwise by Charlie Maynard. Stressed that not doing special administration does not mean satisfaction with company performance, and highlighted actions taken by the government besides SA. Discussed the current stability of Thames Water and the importance of financial resilience in the water sector. Raised concerns about past decisions affecting debt levels and ownership structures.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
While supporting concerns about Thames Water, cautions that proposed solutions may not work in Scotland due to differences in environmental protection agency practices and monitoring of water discharges. Pays tribute to the work done by Robbie Moore as a Minister and highlights research showing that only 4% of storm overflows are monitored in Scotland compared to 100% in England. Asked if the Minister had thoughts on nationalisation in Scotland, noting that Scottish Water is performing poorly despite being state-owned.
Luke Taylor
SNP
Central Ayrshire
Supports the lead MP's concerns about Thames Water’s financial health, indicating that Ofwat and the Minister's DEFRA team are not adequately addressing the issue.
Dhesi
Lab
Slough
The hon. Member's speech highlights the concerns over water bill increases and environmental damage caused by Thames Water, urging the Government to take firm steps against exploitation of both the environment and people.
Twickenham
Thames Water is proposing to pump treated sewage into the river at Teddington, which will undermine public trust and affect water quality. The Government have the power to take this scheme off the table.
Robbie Moore
Lab
Dulwich and West Norwood
Questions the effectiveness of Ofwat in regulating water companies, citing Scottish Water as an example where only 4% of storm overflows are monitored.
Sarah Olney
LD
Richmond Park
Sarah Olney echoed concerns about Thames Water's debt and bill hikes during the cost of living crisis. She called for special administration due to the company's failure to meet its basic duties, such as fixing burst sewage pipes and underfunding critical infrastructure.
Slough
The hon. Member correctly highlights the poor customer satisfaction ratings of Thames Water, which have been among the worst for four consecutive years. The previous Conservative Government's record on water companies was also criticized for debt and excessive executive bonuses.
Will Stone
Lab
Swindon North
Thames Water is systematically failing the public on pretty much every level. It lacks investment in infrastructure, leading to mass pollution and destruction of natural habitats. The company also has poor customer service and fails to address flooding issues.
Government Response
Rebecca Pow
The Parliamentary Under-Secretary of State for Water and Flooding
Government Response
The Government recognise the importance of addressing the issues raised regarding Thames Water. The Water (Special Measures) Act 2025 has been enacted, establishing an independent commissioner for the water sector to enhance regulation. However, further action is being considered to ensure that Thames Water delivers infrastructure upgrades and stabilises prices. Defends the government's actions on water reforms, noting that cross-party amendments were accepted in the other place despite claims otherwise by Charlie Maynard. She pushes back against the notion that no amendments were accepted. Announced ten initiatives introduced by her Government to improve the water industry since taking office, including banning bonuses with the Water (Special Measures) Act 2025, introducing criminal liability, doubling compensation for burst pipes, setting up an independent commission, changing articles of association, ringfencing money for investment, and passing bathing water reforms. Defended Ruth Kelly's role as chair of Water UK, not Thames Water, and highlighted the importance of fair treatment for workers in the industry. Emphasised that resolving water sector challenges requires long-term transformative change; discussed recent Water (Special Measures) Act to improve industry performance; launched independent commission on regulatory system; clarified special administration process as an ultimate enforcement tool requiring company insolvency or serious breaches, not currently applicable.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.