Skip to main content
Advertise with the Morning Star
Water industry reforms won't work unless private model is confronted head on, campaigners warn
South East Water staff hand out bottled water at a water station in Maidstone, after bad weather was blamed for more water outages in Kent and parts of Sussex, January 13, 2026

REFORMS to the water industry will do nothing to clamp down on pollution for profit unless the government confronts “the failed privatised model head on,” campaigners warn.

New government plans will force water companies to carry out infrastructure “MOTs” to prevent massive failure after South East Water left tens of thousands without water in recent weeks.

Ministers published the water white paper today, which will abolish Ofwat and consolidate four different oversight public bodies into a single new regulator.

River Action chief executive James Wallace said the government plans signal it “recognises the scale of the freshwater emergency, but lacks the urgency and bold reform to tackle it.”

Proposals for further checks on the industry, including the appointment of a chief engineer alongside no-notice inspections and infrastructure “MOTs” are welcome steps, he said.

But Mr Wallace warned Sir Keir Starmer’s government that major gaps remain.

He said: “None of these reforms will make a meaningful difference unless the failed privatised model is confronted head on.

“Pollution for profit is the root cause of this crisis, yet the White Paper is vague on when the government will step in to take control of failing water companies.”

He called for the implementation of “clear, published triggers for special administration” and a “commitment to restructure water company investment and ownership prioritising public benefit and environmental performance.”

The GMB union also hit back at the proposals, warning that the new water regulator “must have teeth” to be able to hold companies to account.

GMB national officer Gary Carter recalled the thousands of customers across south-east England who were left without water earlier this month while “top brass” received “big bonuses for presiding over the whole mess.”

The crisis prompted Ofwat to launch a first-of-its kind investigation into South East Water, after up to 30,000 homes were left without water at the height of the shortage.

Mr Carter demanded that there be “fundamental change after years of neglect.”

He said: “We’ve seen it all before, but it has to change. The government has to give its new regulator the teeth to inspect, talk to workers, and to hold water companies to account.

“If private companies refuse to invest the money they’ve received through record bill rises — and circumvent bonus legislation — then they’re not fit to be running water infrastructure.”

Fire Brigades Union general secretary Steve Wright said: “The UK water industry has failed to invest for decades. Over that period, shareholders have extracted enormous profits while costs to users have rocketed.

“In 2020, while seeking election as Labour leader, Keir Starmer recognised this failure and promised to bring water back into public ownership.

“The Water White Paper could have been an opportunity to make good on that promise. But however strongly worded, regulation is not the solution. Regulation has failed.”

Mr Wright went on: “We need real change, not half measures. The country needs action, not a PR exercise. Public ownership is the only solution to this public emergency.

“It is the only sure way to ensure adequate investment in maintenance, infrastructure and future-proofing.

“The FBU calls on all MPs to ensure any legislation delivers this. Decrepit water supply and appalling sewage management must be fixed as a matter of urgency. All aspects of this failure must be addressed.

“The UK is almost alone in the world in having a fully privatised water system. It is expensive, dangerous and unreliable. It is not the job of the Labour Party to uphold hard-line Thatcherite models of ownership.

“It’s time to end this failed experiment and bring water back into public ownership.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.