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PRACTICE NOTES
The provision of childcare in England is regulated in accordance with Part 3 of the Child Care Act 2006 (ChA 2006). Providers of regulated child care must register on one of the two registers maintained by her Majesty's Chief Inspector of Education, Children's Services and Skills (Ofsted) as set out below: • the early years register of all persons or agencies providing early years (ie between birth and the first of September following a child’s fifth birthday) child care • the general child care register which is divided into two parts: ◦ part A: those persons or agencies who are registered as later years (ie children who are five and over) providers of child care ◦ part B: the voluntary register of those who aren’t required to be registered as providers of either early or later years provision but nonetheless choose to register eg a nanny working in a child’s home who chooses to register to assist their employers in obtaining assistance with child care costs by providing approved childcare A
Q&As
The Financial Services Compensation Scheme (FSCS) is a scheme aimed at the protection of retail consumers and small businesses. The Financial Conduct Authority (FCA) through its Compensation Sourcebook (COMP) makes rules that allow the FSCS to provide compensation at a level appropriate for the protection of retail consumers and small businesses. See COMP 1.1.10AG. In order to make a claim for compensation through the FSCS a firm must be an eligible claimant with a protected claim against a relevant person. COMP 4.2 sets out the requirements to meet the criteria
NEWS
Ofwat has completed its enforcement investigation into Dŵr Cymru’s management of its sewage treatment works and sewerage network, an inquiry that began on 16 July 2024. Following a consultation published on 12 March 2026, Ofwat accepted the undertakings proposed by Dŵr Cymru under section 19 of the Water Industry Act 1991 (WIA 1991), thereby foregoing a potential financial penalty of £40.6 million.
NEWS
Ofwat has announced that, following analysis of environmental performances and storm overflow spill frequency data, enforcement notices were served on four water and wastewater treatment companies, including Dŵr Cymru Welsh Water, Hafren Dyfrdwy, Severn Trent and United Utilities. Ofwat has noted that all 11 water and wastewater treatment companies in England and Wales are now subject to enforcement activities.
NEWS
Ofwat has announced a £104bn investment package for the water sector, aimed at accelerating improvements in river and sea water quality, securing long-term drinking water supplies, and complying with new environmental statutory standards and regulatory requirements. Nearly 90% of funding is allocated to meeting new standards set by the Environment Agency, Natural Resources Wales, and the Drinking Water Inspectorate. Key elements include £12bn to reduce storm overflow spills by 45% by 2030 and £2bn in development funding to launch £50bn worth of water supply projects. The package also introduces a claw back mechanism to return unused funds to customers through lower bills. To finance these upgrades, water bills are expected to increase by an average of £31 annually over the next five years, with doubled support for vulnerable customers.
NEWS
Ofwat has approved Market Arrangements Code Change Proposal CPM060 and Wholesale Retail Code Change Proposal CPW156, proposed by arbnco, to allow the Market Operator to share water consumption data with authorised third parties where customer or building owner consent has been evidenced, with implementation from 19 May 2026. Ofwat concluded that the change would create a more efficient and centralised process for accessing consumption data, particularly for non-household customers with property portfolios across multiple retailers and wholesalers, thereby supporting environmental, social and governance (ESG) reporting, water efficiency and customer decision-making. Under the approved framework, third parties will submit requests directly to the Market Operator through a governed process supported by a published data sharing policy, audit rights and customer consent requirements, with oversight from a governance group and the Strategic Panel. While consultation respondents broadly supported the proposal for improving efficiency, transparency and innovation, some raised concerns regarding data protection, competition impacts, governance arrangements, implementation costs and overlap with wider smart meter and open data reforms. Ofwat stated that appropriate safeguards, including compliance with UK GDPR and the Data Protection Act 2018, would mitigate these risks and confirmed that a post-implementation review would assess operational impacts, customer outcomes and any unintended consequences following implementation.
NEWS
Ofwat has blocked over £4m in potential bonuses by enforcing new performance-related pay (PRP) rules introduced under the Water (Special Measures) Act 2025 (W(SM)A 2025). Implemented for the first time in the 2024–25 financial year, these measures have led six water companies—namely Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water, and Yorkshire Water—to withhold director bonuses in response to performance failures, particularly category 1 pollution incidents.
NEWS
Ofwat has launched a consultation on its proposed framework for assessing water companies’ progress against PR24 delivery plans, which underpin the £104 billion investment programme for the water sector in England and Wales. Ofwat said the framework is intended to improve transparency, identify delivery risks at an early stage, and strengthen oversight of how companies deliver funded improvements for customers and the environment. It explained that PR24 represents the largest investment programme in the sector for more than 30 years, driven largely by statutory environmental, water quality, resilience and supply-demand requirements, and noted that the scale of investment creates risks linked to supply chain capacity, labour shortages, and competition from other infrastructure sectors. The proposed assessment approach would evaluate whether companies are forecast to meet Price Control Deliverable (PCD) targets by 2030 and assess confidence in those forecasts through evidence on mobilisation, programme planning, expenditure management, data quality, risk management, and independent assurance. Ofwat said it would use both quantitative and qualitative evidence, including interim milestones and engagement with companies and suppliers, to form a company-level view of delivery progress. It also stated that much of the delivery profile is expected to be concentrated in the later years of the 2025–30 period, particularly for large capital schemes such as storm overflows and phosphorus removal, while activities such as mains renewals and smart metering are expected to be delivered more evenly across the period. Ofwat said it may intervene where delivery concerns arise through enhanced monitoring, challenge letters, improvement plans, or further supervisory action. The consultation closes on 18 June 2026.
NEWS
Ofwat has launched a consultation on its 2026 cost change draft determinations, proposing £3.4 billion in additional expenditure allowances for 13 water companies across 2025–35. The allowances cover per- and polyfluoroalkyl substances (PFAS) removal, asset health, growth, large gated schemes, major projects and Havant Thicket reservoir. For the 2025–30 period, the proposed allowances comprise: (1) £1.25 billion allocated to asset health; (2) £477 million to growth; (3) £34 million to PFAS removal; (4) £772 million to large gated schemes and (5) £331 million to major projects development costs. Companies submitted £4.3 billion in total, with £752 million excluded due to insufficient evidence or being out of scope. In-period revenue of £288.6 million is proposed for five companies—Severn Trent Water, Southern Water, Thames Water, Wessex Water and South East Water—with £2.6 billion in regulatory capital value adjustments to be applied as a midnight adjustment at the 2029 price review. Southern Water customers could see bills rise by up to £43 in 2027–28 as a result. The consultation closes on 24 September 2026.
NEWS
Ofwat has launched a consultation proposing modifications to Condition B of the licences held by the 16 largest appointed water companies in England and Wales. For the 14 companies based in England, the proposed modifications would be made under section 12A of the Water Industry Act 1991 (WIA 1991). For the two companies based in Wales, Dŵr Cymru Cyfyngedig and Hafren Dyfrdwy Cyfyngedig, modifications under WIA 1991, s 13 require the agreement of the relevant company. The consultation closes on 2 September 2026.
NEWS
Ofwat has launched a consultation on draft guidance for water companies delivering projects under the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (SIPR), SI 2013/1582. The guidance sets out Ofwat’s regulatory and commercial expectations for the projects and should be read alongside the statutory guidance, ‘Criteria for selecting specified infrastructure projects’. The guidance also includes provisions relating to special administration and insolvency protections. It confirms that critical contracts—including Revenue Agreements and Bulk Supply Agreements—must be maintained in special administration and that government financial assistance under sections 153–154 of the Water Industry Act 1991 ranks as a special administration expense ahead of preferential creditors and floating charge holders. Rescue options include schemes of arrangement, restructuring plans under Parts 26 and 26A of the Companies Act 2006 and CVAs under Part 1 of the Insolvency Act 1986. The consultation closes on 21 July 2026.
NEWS
Ofwat is consulting on the future role of the Regulators’ Alliance for Progressing Infrastructure Development (RAPID) in delivering major water infrastructure projects in England. The consultation responds to Recommendation 75 of the Independent Water Commission’s 2025 report and the government’s January 2026 white paper title ‘A New Vision for Water.’ It seeks views on expanding RAPID’s remit beyond water supply to wastewater and other strategically important projects, the criteria for RAPID’s oversight, how RAPID should align with planning and procurement processes to reduce delays and duplication and its delivery role alongside new regional water planning arrangements. The consultation closes on 21 July 2026.