Debate on the Independent Water Commission final report

Debate on the Independent Water Commission

A debate has been scheduled in Westminster Hall on 9 February 2026 on the final report of the Independent Water Commission. The subject for the debate was chosen by the Backbench Business Committee, and the debate will be opened by Edward Morello MP.

Following the general election in July 2024, the government announced initial steps to “clean up the water industry”. These steps included immediate measures, such as ringfencing investment in water infrastructure, and plans for longer-term measures, such as introducing new legislation (the Water (Special Measures) Act 2025) and launching a wider independent review of water sector regulation.

An overview of the government’s plans is set out in the Library insight, Water reform: "A new vision for water". The Library briefing Economic regulation of the water industry, provides more detail on the water industry and how it is regulated.

The Independent Commission’s final report

The joint Independent Commission into the water sector and its regulation was launched by the UK and Welsh Governments in October 2024. It was chaired by the former Governor of the Bank of England, Jon Cunliffe, and was “expected to form the largest review of the industry since privatisation”.

In June 2025, an interim report was published, and in July 2025, the final report of the Independent Commission was published. The report made 88 recommendations and concluded that a ‘fundamental reset” of the water sector was needed.

It recommended:

• abolishing Ofwat
• creating a new single water industry regulator for England
• devolving water industry regulation to Wales, and integrating this into the Welsh environmental regulator in Wales.

In tandem with the publication of the Independent Commission’s report, the then Environment Secretary, Steve Reed, made a statement in the House of Commons addressing the report and confirming the government’s plans to create a new single regulator for the water sector in England, as well as wider regulatory reforms.

Government response

In January 2026, the government published its water white paper, A new vision for water, which set out its response to the Independent Commission’s final report and the government’s plan to “overhaul the water system”.

More information about the white paper is set out in the Library insight, Water reform: "A new vision for water".

In a statement in the House of Commons, the Environment Secretary, Emma Reynolds, set out the actions outlined in the white paper, including plans for a new single regulator and wider policy reforms, and confirmed that the white paper would be followed by a 2026 Transition Plan and a Water Reform Bill.

Stakeholder response

Broadly, stakeholders across the water sector welcomed the findings of the Independent Commission and called on the government to implement them. Many stakeholders had previously responded to the Independent Commission’s consultation, of which a summary is published (PDF).

Additionally, the House of Commons Environment, Food and Rural Affairs (EFRA) Committee scrutinised water companies through its inquiry on Reforming the water sector, publishing its report in June 2025. Following the Independent Commission’s final report, the EFRA Committee held an oral evidence session with Minister Emma Hardy about the government’s next steps to reform the sector.

The Consumer Council for Water (CCW) responded on behalf of customers, welcoming the report and in particular its recommendations for a single social tariff (a uniform support scheme for those who cannot afford their water bills in England). It also welcomed recommendations from the Commission to establish a Water Ombudsman, noting that CCW already runs a successful voluntary ombudsman scheme that it says should be mandatory.

Water UK, the industry body representing water companies in England, welcomed the report as a “comprehensive, detailed review of the whole sector, with many wide-ranging and ambitious recommendations” and said that it was now up to the government to decide which recommendations to take forward and in what way.

Ofwat, the current economic regulator of the water sector, also welcomed the report and said that it set out “important findings for how economic regulation is delivered”. It said that it would work with government to “reset the sector”, following the government’s announcement that it would abolish Ofwat in favour of a new single regulator, in line with the review’s recommendations.

Other organisations have also responded to the final report, including UK Water Industry Research (UKWIR), which provides impartial research to the water sector. The Institute for Civil Engineers (ICE) welcomed the recommendations of the report as “comprehensive and unflinching”, and said that a systems-based approach would be necessary to improving the water sector.

However, some environmental campaign groups were more critical. River Action and Surfers Against Sewage, along with 17 other environmental organisations, published a joint response analysing the report (PDF), which criticised the continuation of a privatised approach to the water industry, and said that the final report “ducks the bold measures needed to restore public trust and environmental integrity”. They call for stronger action particularly on water pollution from sewage.