Government announces water sector overhaul creating new regulator and ombudsman
The Department for Environment, Food & Rural Affairs (Defra) has published a Water White Paper setting out a once-in-a-generation reform of the water system through the creation of a new single water regulator with stronger powers. The government proposed tougher oversight and clearer accountability for water companies, replacing fragmented and reactive regulation with a prevention-focused approach. A Chief Engineer will be embedded within the regulator to restore hands-on scrutiny of infrastructure, supported by mandatory ‘MOT-style’ health checks on water assets. The regulator will gain powers to intervene quickly where companies underperform, supported by dedicated supervisory teams and no-notice inspections. The White Paper also introduced measures to reduce disruption, pollution and household costs, including smart water metering, mandatory efficiency labelling on appliances, sustainable drainage and stronger action on sewer misuse. A new statutory Water Ombudsman will have binding powers to resolve customer complaints and require fair compensation. The reforms are supported by coordinated local water planning and major investment, including £11bn to improve storm overflows, nearly £5bn for wastewater treatment upgrades, and a wider £60bn programme to protect rivers by 2050, backed by £104bn of private investment and to be implemented through a 2026 Transition Plan and new legislation.