Jake Richards MP: Labour is abolishing Ofwat to fix our water system
For too long, the British public has been let down by a broken water system. Under the Conservatives, water companies were allowed to pollute our rivers, lakes and seas with impunity while families were hit with rising bills and falling standards. After 14 years of failure, this Labour Government is putting things right.
Last week, I was pleased to see the government announce the biggest overhaul of the water sector since privatisation. Ofwat, the failed regulator that stood by while water companies handed billions to shareholders, is being abolished.
In its place, we are creating a single, powerful regulator that brings together responsibilities from Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate. This will cut through the confusion, deliver stronger enforcement and ensure real accountability.
The government’s ambition is clear: cleaner water and fairer bills. That is why we are introducing a new water ombudsman with legal powers to stand up for consumers, resolve disputes and put money back in people’s pockets. It will replace a voluntary complaints system with one that is independent, legally enforceable and free to use.
We are also making record investment. Over £100 billion is being committed to upgrade sewage pipes and treatment works. Fines paid by polluting companies are being reinvested directly into local clean-up projects. Customer bills are now ringfenced to fund improvements, not bonuses or dividends thanks to tough new legislation that bans unfair bonuses for senior bosses at Yorkshire Water.
Another ambitious but deliverable target set by the government is to halve sewage pollution by 2030. Water companies will be made to cover the cost of investigations and prosecutions. Those responsible for illegal sewage dumping will no longer escape accountability.
This is a plan rooted in reform, not ideology. While others make empty promises, this Labour government is getting on with the job. We are cleaning up the mess we inherited, rebuilding public trust and making the water industry work for us once again.