The Government is today publishing its Water White Paper outlining its plans for water sector reform in England, describing it as “the biggest overhaul in a generation.”

The proposed new measures include:

• A new Chief Engineer to bring technical expertise to new regulator, ending days of water companies marking their own homework
• New ‘MOT’ checks on water infrastructure to stop water company assets being left to crumble and powers for regulator to intervene early where failures spotted
• Wider rollout of smart meters and mandatory efficiency labels on items like dishwashers to bring savings of over £125 million on water and energy bills over the next decade

The Water White Paper sets out clear powers for the new regulator, delivering tougher oversight and stronger accountability for water companies.

For the first time in two decades, a Chief Engineer will sit inside the new single water regulator – the government says this will bring back the hands-on checks of water infrastructure “Ofwat has failed to provide, ending the days of water firms marking their own homework, resulting in crumbling pipes and unreliable services.”

The new regulator will introduce an ‘MOT’ approach for water company infrastructure, requiring health checks on pipes, pumps and more. The forward-looking approach means no more waiting to act, spotting problems before they happen and preventing water shortages.

The reforms are aimed at putting prevention first, requiring companies to plan for the long-term. Where companies fall short, a new Performance Improvement Regime will give the regulator the power to act fast and fix failures so that underperforming water companies recover faster, protecting customers and the environment and giving stability to investors.

Building on last year's plastic wet wipes ban, the White Paper prioritises pre-pipe solutions that tackle the root causes of pollution through sustainable drainage, rainwater management, and cracking down on sewer misuse.

"Tough oversight, real accountability, and no more excuses"

Environment Secretary Emma Reynolds said:

“These are once-in-a-generation reforms for our water system - tough oversight, real accountability, and no more excuses.

“Water companies will have nowhere to hide from poor performance, customers will get the service they deserve, and investors will see a system built for the future.

“This builds on the tough action we’ve already delivered, from record investment to banning unfair bonuses.”

The White Paper sets out plans for dedicated supervisory teams for each water company which will replace the current one-size-fits-all approach, giving the new single regulator a thorough understanding of how each company operates – and the ability to intervene before problems take hold.

New powers for single regulator to conduct ‘no notice’ inspections

Stronger inspection powers will enable the new single regulator to conduct ‘no notice’ inspections – this will help prevent the kind of disruption that has affected communities across South East England in recent weeks, the government says..

This stronger, prevention-first regulation will form part of a whole sector approach for tackling water pollution and protecting the environment. New reforms will instead bring councils, water companies, farmers, and developers together to deliver joined-up local plans to tackle river pollution, water resources and housing growth. The reforms are intended to improve existing water industry planning, described as “currently fragmented across more than 20 different processes, which is inefficient and not cost effective.”

In addition, more joined up regional water planning will reduce duplication, minimise bureaucracy and deliver better value for money.

The White Paper is also proposing a new Water Ombudsman with legally binding powers to resolve customer complaints to improve the current system for dealing with customer complaints which “lacks teeth and too often leaves customers with nowhere to turn.”

This means companies will face tougher requirements to respond quickly and compensate fairly when things do go wrong, such as the disruption seen in Tunbridge Wells, and the South East in recent months.

.A 2026 Transition Plan will set out the path to the new system, and a new water reform bill will bring forward the legislation needed enable the system to take effect.

Click here to download the Water White Paper January 2026