Ofwat, the regulator for the water and wastewater sectors in England and Wales, is set to be scrapped, following an independent commission into the industry.
The Government will establish a new, single, powerful regulator to cut water pollution in England’s rivers, and take responsibility for water functions across Ofwat, Environment Agency, Natural England and Drinking Water Inspectorate.
The commission report, led by Sir Jon Cunliffe, has been undertaking the largest review of the sector since privatisation.
His report sets out 88 recommendations as part of a ‘fundamental reset’ of the water sector.
The Environment Secretary, Steve Reed, said a new regulator would “stand firmly on the side of customers, investors and the environment and prevent the abuses of the past.”
The scrapping of Ofwat is one of the recommendations the Government has announced it will be fast tracking.
A full response to the report is due in the Autumn, along with a White Paper which will set out what a new Water Bill could include.
Paddle UK and the Clean Water Sports Alliance met with the Commission in March.
The report published today, 21 July, references the evidence submitted by the CWSA, which called for public health reforms to better manage public health risks in water.
The report acknowledges that:
“People want safer water, including for more recreational use, and there is growing public pressure for this vital part of the natural environment, our waterways and coasts, to be preserved and restored.”
Among the recommendations that aim to protect public health are:
- A greater say for public health through strengthened Regional Water Authorities
- A more coherent approach to pre-pipe solutions, preventing pollutants reaching rivers (such as the Government taking swifter action to ban wet wipes)
- A review by the Chief Medical Officers of England and Wales on the incorporation of public health into the legislative framework for water
- Stronger public health protections for water bodies that have a higher recreational or aesthetic value, that goes beyond existing bathing water locations
- A new, long-term, cross-sectoral, and systems-focused National Water Strategy for England and Wales.
The report comes as the Environment Agency said pollution incidents by water companies rose by 60% in a year.
There were 2,801 pollution incidents in England in 2024, the highest on record, compared with 2,174 in 2023.
Ben Seal, Paddle UK’s Head of Access and Environment, said:
“There are a lot of positives in the Water Commission and we are clearly very pleased that they have heard our calls for new legislation to better protect recreational users.
“They have acknowledged the growing demand for recreational use and the need to bring new laws to safeguard our health.
“But these are only recommendations, what really matters is how the Government takes these forward in a new Water Bill.”
Ben added:
“The decision to abolish OFWAT and create a new regulator may appear bold, but clearly a regime that has overseen a culture of persistent rule breaking and non compliance for decades can no longer be considered fit for purpose.
“However, if what comes next does not have the teeth, the resources nor the powers to protect and stand up for the public, then we will be no further forward.
“Let’s hope the Government does not delay in implementing Sir Jon’s recommendations in full.”
Last week, Surfers Against Sewage and 40 organisations, including the Clean Water Sports Alliance, wrote to the Prime Minister to demand an urgent end to the sewage scandal through a ‘systemic transformation of the water industry’.
Whether or not the report published today will lead to ‘systemic transformation’ is unclear.
Many believe that the fact that the Commission has not been able to address the issue of who owns our water companies, is a missed opportunity.
Ultimately, it will now be up to the Government to decide how far it is really willing to go with reform, when it publishes its response, and the White Paper later this year.