Environment Secretary Angela Eagle has pledged that the Labour Government is prepared to change the law to reform England’s water industry, saying the current system has been “failing people for far too long”.
Eagle set out her determination to overhaul the sector following years of anger over sewage pollution, leaks, rising bills and concerns about the financial resilience of major water companies.
Writing on X, she said:
“Our water system has been failing people for far too long. Everyone knows it.”
She added:
“This Government is putting the public back in control of the essentials, and as Environment Secretary I will make that happen for water.”
The comments come as the Government considers further changes to the legal and regulatory framework governing water companies. Ministers have made clear they are prepared to legislate where necessary as part of wider reforms to the industry.
Eagle has already branded water regulation “toothless” and pledged to fundamentally reform it, while warning that years of underinvestment have left households frustrated.
Water companies have faced sustained criticism over sewage discharges, ageing infrastructure and the level of investment in the network. Recent months have also brought renewed debate over whether the current ownership and regulatory model is capable of delivering the investment and accountability expected by customers.
Prime Minister Andy Burnham has already signalled a tougher approach towards essential utilities, arguing that the public should have greater control where companies fail to deliver acceptable services. He has told MPs that ministers are assessing all possible solutions for the water industry and that a 10-year plan will set out stronger public control over essentials.
Burnham has also cautioned that reversing the 1989 privatisation of water companies would be difficult, while insisting the current model is no longer delivering for customers or the environment.
For Eagle, the priority is ensuring that water companies are accountable to the communities they serve while securing the long-term investment needed for cleaner rivers, more resilient supplies and better infrastructure.
Her intervention marks another sign that the Labour Government is prepared to consider substantial reform rather than simply maintaining the existing regulatory system.
The Government’s approach is also likely to focus heavily on protecting customers, particularly as households face concerns over bills while water companies seek billions of pounds of investment for infrastructure upgrades.
Eagle’s message was clear: ministers believe the status quo is no longer acceptable.
With further proposals expected as Labour develops its programme for the sector, water reform is set to become a major part of the Government’s wider argument that essential services should work in the public interest rather than leaving consumers to bear the consequences when companies fail.
