Water (Special Measures) Act 2025: Enforcement

[Dr Rosena Allin-Khan in the Chair]

I beg to move,

That this House has considered the enforcement of the Water (Special Measures) Act 2025.

It is a pleasure to serve with you in the chair, Dr Allin-Khan, and to open this debate on the enforcement of the Water (Special Measures) Act 2025.

Like many Members across this House, I welcomed the introduction of the Water (Special Measures) Act last year. After years of public anger over pollution, rising bills and declining services in the sector, the Act promised a tougher approach to a failing water industry. It pledged to ban bonuses for failing bosses, bring criminal charges against persistent law breakers, impose meaningful fines and introduce independent monitoring of every sewer overflow. On paper, that sounded like progress. In practice, the Act has proved to be little more than a drop in the ocean.

The Water (Special Measures) Act was meant to turn the tide, but right now the sewage is still flowing and so are the excuses from water bosses. The Act was intended to strengthen regulation and restore public trust, yet in the months since its introduction we have seen companies complying with the letter of the law while confidence continues to drain away. When regulation is drafted so narrowly it can be complied with but the purpose is undermined, it is quite clearly not fit for purpose and not strong enough. That brings me to a central question of this debate: how do we ensure that the principles of the Act are properly enforced, and that water companies are genuinely held to account?

Nowhere is the failure of the current system clearer than the performance of Yorkshire Water, which supplies water to my constituents in Harrogate and Knaresborough. The problems they face mirror those across the country, from poor customer services to rising bills and the persistent sewage pollution we see in our rivers.

Yorkshire Water was classified by Ofwat as “lagging behind” but my constituents are having to pay that price upfront. In October 2025, the Environment Agency gave Yorkshire Water a red rating for serious pollution incidents. Those incidents had almost tripled in 2024, leaving the company with one of the worst pollution records in the country. Despite this performance, customers have repeatedly been asked to pay more while receiving less. One constituent described their experience as:

“Probably the worst consumer experience I have had in my life”.

Against that backdrop, many were rightly shocked by comments from the Yorkshire Water chief executive when she suggested criticism of the company reflected

“a level of expectation from customers that’s much higher”

than it had been. With water bills expected to rise by as much as 41% over the next five years, and a hosepipe ban that was imposed from July to December, my constituents are entitled to ask how low does she think their expectations should be? If expectations are too high, then perhaps the problem is not the public but the leadership of Yorkshire Water.

I commend the Liberal Democratic party for all they do on water issues. That cannot be taken away from them: they are to the fore. Other parties may be a wee bit annoyed at that, but they are so active it is incredible. Well done.

Does the hon. Gentleman agree that the private companies do not appear to be tied to doing the right thing for the public as a whole, but to doing more for their investors? The ability to freeze bonus payments as a penalty should be used, and the consultation with the Department for Environment, Food and Rural Affairs must allow this measure to be implemented in a quick and cost-effective manner, as a matter of urgency. Does he agree that is one thing that could be done?

I thank the hon. Member for his intervention. It is a pleasure to take an intervention from him, as always. I completely agree with what he has outlined and the characterisation of the way that the water sector is, frankly, morally bankrupt. There is no interest in the public good. That is why my party has long been calling to see these companies reformed, where they have to put public benefit interest first rather than corporate shareholder responsibilities.

I thank the hon. Member and alongside him I wish to put on record on behalf of my constituents what an absolute disgrace Thames Water is. In a desperate attempt to secure their investments, avoid special administration and keep the company within the private sector, Thames Water’s creditors are trying to strike a deal with Ofwat that would see them polluting our waterways for up to 15 years. That is a shameless attempt that proves that they cannot be trusted to put the best interests of their customers or the environment ahead of their own purses. Does the hon. Member agree that Ofwat ought to reject that deal and use the powers it has been granted through this Act and put Thames Water into special administration?

The hon. Lady hits the nail on the head. Water companies are trying to get away with doing grubby deals by the back door. Across the board—it is not just Thames Water and Yorkshire Water—the sector is not operating as it should, so we need proper wholesale reform of the water companies’ models.

If the expectations are too high, it is perhaps not the public who have the wrong end of the stick, but the leadership of Yorkshire Water. Clean water is not an unreasonable demand, but the bare minimum that we should be able to expect. My constituents can see the consequences of Yorkshire Water’s failure at first hand; they need only to go out into our wonderful countryside across Harrogate and Knaresborough, where the River Nidd, Crimple beck and Oak beck have all been affected by sewage outflows and overflows.

In my constituency, the River Avon and its tributaries are central to our natural environment and to leisure and tourism—the visitor economy. It is a disgrace that our waterways are still being polluted. Does my hon. Friend agree that water management data must be transparent, and that the Government must introduce monitoring of the volume, not just the duration, of sewage overspills?

I thank my hon. Friend for that very pertinent intervention. I have been to Stratford, and it is a lovely place. No community should be blighted by sewage at the hands of these water bosses. The point about volume, and not just hours of sewage dumping, is key.

The River Nidd, which once brought joy to families in Harrogate and Knaresborough, is now treated as a health hazard. Every year, kids are taken to hospital after playing and swimming in it. Dogs routinely fall sick and have to go to the vet if they dare go swim in the lido. That is not progress, but decline. Things are not getting better; they are still getting worse.

My hon. Friend is being very generous with his time. In 2024, storm overflows at Harbertonford waste water treatment works discharged into the Harbourne river for more than 3,500 hours. In other words, raw sewage was pumped into the river, which flows into the glorious River Dart, for 40% of the year. As of this morning, the same storm overflow has been activated since 11 January. Does my hon. Friend agree that South West Water must not be allowed to get away with that?

That is another fantastic example of how poorly water companies across the length and breadth of our country are performing. It is entirely unacceptable. My hon. Friend and many other Liberal Democrat colleagues have done a fantastic job of holding the water bosses to account. Her constituents are very lucky to have her, and I am sure she will continue to do that.

Last summer, I took part in the Knaresborough bed race, which ends with participants crossing the River Nidd after running around town, up and down hills, with kids on beds. It is a fantastic event. If Members have not seen it, they should google it—even better, they should come and watch it. Hopefully, I will get a place to do it again this year. But in recent years the river crossing at the end has become contentious. There was talk of scrapping it altogether because of the danger of having to cross the river when sewage overflows have been pumping. Locals advise those competing in the race to drink a can of full-sugar Coke at the end in the hope that it will kill off any bacteria and nasty things that they may have swallowed during the river crossing. When that is the best piece of advice that people can give to those competing in a sporting event, something has gone very wrong. The regulation of the water sector is completely failing. No one should have to fear sickness from their local river in 21st century Britain, but that is Yorkshire Water’s legacy in my constituency.

The hon. Gentleman is making an impassioned speech about Yorkshire Water, which also serves Dewsbury and Batley. In 2024, there were at least 346 sewage dumps in local waterways in Dewsbury and Batley, lasting over 1,000 hours. That equals 1.5 months of continuous sewage discharge. Discharges around Batley beck, the River Calder and the River Spen are blighting our waterways and our community. In addition, sewage is backing up into streets and people’s homes because of a failure to maintain pipes or design the system correctly. Does the hon. Gentleman agree that water companies have been getting away with almost murder for too long and must be held accountable? Customers must not have to pay any longer for their failings and their profiteering.

I agree with the hon. Gentleman’s characterisation of Yorkshire Water. All too often, we hear that there will be investment and improvement, but it is frankly too little and often too late. There has been a lack of investment in infrastructure over decades, which has left the system creaking at the seams. I completely agree that we need to get a proper grip of the issues that I have outlined.

I will add another name to the catalogue of water company disasters: Southern Water. In Rudgwick in my Horsham constituency, residents have complained for almost 20 years about effluent backing up into bathrooms, footpaths covered in soiled loo paper and having to keep children and pets indoors. Yet over the last decade, average Southern Water bills have shot up from £262 in 2016 to £702 today. Does my hon. Friend share my frustration that residents are paying vastly more with absolutely nothing to show for it?

That is a damning indictment of the state of water companies across the length and breadth of this country, especially at a time that is hard financially, when people have to tighten their belts more than ever before and are struggling with the cost of living crisis. That is what jars people: when they see their water bills going up more and more but they still have to deal with the grim situations that my hon. Friend outlined so eloquently. That is not an isolated story; it is a reflection of systemic failures across the industry and our country.

Since the introduction of the 2025 Act, Thames Water’s financial position has, as we have heard, continued to deteriorate, while sewage discharges persist. In the south-east just a few weeks ago, we saw repeated outages that left households without even the basic service of being able to turn on the taps. When water companies repeatedly fail and nothing visibly changes, the message to the public is clear: accountability is missing.

I thank my hon. Friend for being so generous. As the Member of Parliament for Tiverton and Minehead, I represent two water companies, Wessex Water—who are no angels—and South West Water—who I have been chasing for several months in order to get a meeting on behalf of a constituent whose bakery was flooded to such an extent that she has now had to shut up shop and go home. I am supposed to be meeting them on Monday, but it has taken at least four days to get a time out of them. Does my hon. Friend agree that it is a disgrace that these companies are able to literally stick their fingers in their ears when people raise concerns on behalf of their communities?