Water Companies

Toby Perkins Excerpts

Monday 8th June 2026 Commons Chamber

[Mr Toby Perkins (Chesterfield) (Lab)]

My hon. Friend the Minister is absolutely right to say that we are united by our anger about the systemic failures in the water industry, in terms of both financial and environmental regulation, and the under-investment in infrastructure over a long period—although the fact that Welsh Water, a not-for-profit water company, is also a poor performer when it comes to the environment shows that it is simplistic to say that profit is the only issue here.

The Government have rightly addressed one of the issues—the amount of investment going in—but we need to see results from higher bills, and we also need to see regulatory reform as soon as possible. Will the water Bill tackle the environmental failures and also put in place a regime that prevents the kind of appalling indebtedness that we saw with Thames Water, and the industry more generally, and the prioritisation of those debts ahead of delivering for customers?

[Emma Hardy]

I thank my hon. Friend for his work as Chair of the Environmental Audit Committee. He is right to highlight the under-investment in infrastructure. In fact, some of the problems around resilience are, quite frankly, due to the under-investment in infrastructure, which is why we need to set resilience standards. He is also right that we need to see action resulting from higher bills, which is why we formed the water delivery taskforce to hold the water companies to account for the promises they have made on delivering infrastructure.

On the point about having an integrated regulator, at the moment Ofwat looks at things financially, the Environment Agency looks at the environment and the Drinking Water Inspectorate looks at drinking water. By abolishing that and bringing the regulator into one, we will have an integrated regulator that places the environment, customers and—what has been missing for the last 14 years—public health at its heart, which is incredibly important. Finally, I agree with him about debt levels; that was one of the things in the Sir Jon Cunliffe commission.