A sweeping report from the Independent Water Commission has recommended dismantling the regulatory framework that governs the water industry in England and Wales, calling for the abolition of Ofwat and a raft of other oversight bodies. The final report, published on 21 July 2025, comes amid mounting criticism of the sector over pollution, infrastructure failures and a perceived lack of accountability. The review—described as the most comprehensive since the privatisation of water services in the 1980s—sets out 88 recommendations aimed at overhauling management of the sector and restoring public trust.

• Independent Water Commission
• Ofwat
• Privatisation of water services in the 1980s

At the heart of the proposals is a plan to replace multiple regulators with a single integrated watchdog in each nation. In England, a new unified regulator would assume responsibility for economic, environmental, and drinking water oversight—roles currently shared between Ofwat, the Environment Agency, the Drinking Water Inspectorate, and Natural England. In Wales, the duties would be consolidated under an enhanced Natural Resources Wales.

• Ofwat
• Environment Agency
• Drinking Water Inspectorate
• Natural England
• Natural Resources Wales

Sir Jon Cunliffe, who chaired the commission, argued that fragmentation across the current regulatory system had led to duplication of effort, gaps in enforcement, and inconsistencies in holding companies to account. “The current model is no longer fit for purpose,” he said, adding that a streamlined approach would allow for “clearer responsibility, stronger oversight, and better outcomes for people and the environment.”

• Sir Jon Cunliffe

The report also lays out plans to decentralise long-term infrastructure planning through the creation of regional water system planning bodies—eight in England and one in Wales. Each would develop locally informed strategies, taking into account climate pressures, population growth and ecological needs. These new bodies would be composed of representatives from local government, public health, and consumer groups, with powers to guide investment priorities and oversee delivery.

• Climate

In response to the findings, the UK government announced plans to create a statutory, independent water ombudsman tasked with handling consumer disputes. Unlike the current voluntary system, the new ombudsman would have legal authority to resolve complaints across the sector.

• UK government

Speaking after the report’s release, Environment Secretary Steve Reed said the government welcomed the “root and branch reform” called for by the commission. “We are determined to make the water industry properly accountable to the public,” he noted, confirming that the ombudsman measure would be one of the first steps in responding to the report’s recommendations.

• Environment Secretary Steve Reed

The suggestions are also aimed at addressing longstanding concerns around fairness and affordability. The report calls for mandatory water metering across England and Wales and recommends introducing a social tariff to support low-income households. According to data cited in the review, only just over half of consumers currently consider their water bills to be fair—a figure recorded before a 26% average price increase earlier this year.

• Social tariff

The commission’s work was jointly commissioned by the UK and Welsh governments in the aftermath of a series of high-profile environmental incidents, including widespread criticism over the release of untreated sewage into rivers and seas, and growing concerns about water companies’ financial strategies. The report portrays an industry struggling to adapt to modern demands and climate risks, hindered by regulatory misalignment and legacy structures.

With the regulatory changes likely to require primary legislation, implementation may take several years. The government has not yet formally endorsed all 88 recommendations, but the tone of official response has so far signalled broad support.

Sir Jon concluded that public trust must be rebuilt “one step at a time, with visible changes that show the industry is being run in the public interest.” Whether these proposed reforms achieve that remains to be seen, but the call for fundamental change has now been firmly placed on the political agenda.

• Sir Jon