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UK Abolishes Ofwat and Establishes New Water Regulators

The government has confirmed a £104bn plan to halve sewage pollution by 2030; detailed legislation will be set out in an autumn white paper.

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(FILES) An aerial view shows the outfall into the River Thames, at Thames Water's Crossness Sewage Treatment Works, in south east London on July 3, 2023. The number of serious pollution incidents caused by water companies in England rocketed by 60% in 2024, according to a report by the Environment Agency on July 18, 2025, further tarnishing the image of a sector in crisis. British water companies, privatized since 1989, have been under fire for several years due to the discharge of significant quantities of wastewater into rivers and the sea, accused of having insufficiently invested in an outdated sewer system. (Photo by Ben Stansall / AFP) (Photo by BEN STANSALL/AFP via Getty Images)
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Overview

  • The government has formally adopted Sir Jon Cunliffe’s recommendations, scrapping Ofwat and merging its duties with other watchdogs into single regulators for England and Wales.
  • A new legally binding water ombudsman will replace the voluntary Consumer Council for Water to give customers clearer powers to resolve complaints.
  • Ministers pledged £104bn for infrastructure upgrades to halve sewage pollution in rivers, lakes and seas by 2030, with water bills projected to rise about 30% over five years.
  • Nationalisation of water companies was ruled out as too costly—estimated at over £100bn—with the government opting instead for strengthened oversight of private operators.
  • An autumn white paper will detail the required legislation and the phased launch of the new regulator is scheduled to conclude around 2027.