THE water sector is in need of root-and-branch reform, a cross-party committee of MPs warns today.

A new report by the environment, food and rural affairs committee calls for reform to “ensure that more money gained from investors and through customer bills is directed towards investment in water infrastructure and service delivery,” rather than towards debt repayments or financial rewards for water bosses.

“Despite some initial success after privatisation in 1989, root-and-branch reform of the water sector is now needed to improve the sector’s culture,” the committee said.

They accused water firms of being “deaf to the crisis” it is facing, and argued that the government “should feel able to use its temporary nationalisation powers” when needed.

Committee chairman Alistair Carmichael said: “It is not acceptable that it has fallen to commendable citizen scientists to expose issues with local water resources.

“Environmental protection and the delivery of reliable and safe water must be the first priorities of water companies and regulators.”

GMB national officer Gary Carter said the report “hit the nail on the head.”

He said: “The current ownership model has utterly failed and we need different options.

“We must end the era of large debt, big bonuses and massive dividends which has failed the public and water workers alike.

“Tougher regulation is required along with greater accountability and oversight — or nothing will change.”

A Defra spokesperson said: “As part of the plan for change, new legislation has banned unfair multimillion-pound bonuses for bosses at six water companies and launched a record 81 criminal investigations.

“This government has also secured the largest investment into the water sector in history, with £104 billion in private sector investment to clean up rivers, lakes and seas and cut sewage by nearly half by 2030.”

A spokesperson for Water UK, a trade association representing industry firms, said: “Companies are focused on investing a record £104 billion over the next five years to secure our water supplies, end sewage entering our rivers and seas and support economic growth.”

Water companies in England recorded 2,487 pollution incidents in 2024 — the highest number in a decade.