Independent Water Commission

Lord Hunt of Kings Heath Excerpts

Monday 12th January 2026 Lords Chamber

[Lord Katz (Lab)]

When we are delivering a once-in-a-generation reset of a system that has not been touched in, frankly, decades—in the last 14 years of the last Government—it is important that we make sure that we get the reforms right. If that means that there is a delay in publishing the White Paper, it is better to make sure that we measure twice and cut once. It is important that we provide certainty to customers, the industry, regulators and, indeed, investors in making that delay. That does not mean that we have not been doing anything. There has been constant dialogue with key stakeholders, including companies and investors, throughout the development of the White Paper. Obviously, we have also already legislated through the Water (Special Measures) Act to make sure that we a have a really strong regulatory regime. It has already seen over £4 million in bonuses to company executives banned by Ofwat in six out of the nine water companies. So, it is not as if action has not been taken.

[Lord Hunt of Kings Heath (Lab)]

My Lords, in considering the response of the Government, my noble friend the Minister mentioned the chief executive of South East Water. He will be aware of the criticism that the chief executive failed to show up for many days when the crisis hit Tunbridge Wells and that, at a recent Select Committee hearing, he gave what the Drinking Water Inspectorate politely described as misleading evidence. In the response to the review, can we be assured that, when chief executives behave in such a despicable way, they will be removed from their position?

[Lord Katz (Lab)]

I say to my noble friend that Defra takes this matter with the utmost seriousness. It simply cannot be the case that people are left to go days on end without an adequate water supply. As I have said, we will take every step to make sure that the chief executive and the executives in the water company are held to account on delivery. As I said in response to the previous question, we have already taken action to legislate and toughen up the regulatory framework. As a consequence, we have already seen, in six out of nine water companies, bonuses banned. We are willing to take action. I am not going to set out the exact details of the White Paper now, but it is important that water company executives realise that they are there to serve their customers, not simply to feather their nest.