UK Inquiry Tracker

Water sector regulation

Public Accounts Committee Closed Inquiry

Opened: 26 Mar 2025 Closed: 22 Sep 2025 Parliament page

England and Wales’ supply of clean drinking water is managed by sixteen privately-owned companies. These companies are expecting to spend at least £272bn over the next 25 years to meet significant supply and environmental challenges faced by the sector. The Department for Environment, Food & Rural Affairs (Defra) oversees water … Read more England and Wales’ supply of clean drinking water is managed by sixteen privately-owned companies. These companies are expecting to spend at least £272bn over the next 25 years to meet significant supply and environmental challenges faced by the sector. The Department for Environment, Food & Rural Affairs (Defra) oversees water policy, while Ofwat, the Environment Agency and the Drinking Water Inspectorate also have separate regulatory responsibilities. In a 2020 report on water supply and demand management, the PAC warned that England faces a serious risk of running out of water within 20 years, and called on Defra, Ofwat and the Environment Agency to take urgent action to ensure a reliable water supply in the years ahead. It also found that Government has failed to be clear with water companies on how they should balance investment in infrastructure with reducing customer bills. The Environment, Food and Rural Affairs (Efra) Committee launched its own inquiry into reforming the water sector in 2024. The National Audit Office’s (NAO) 2025 report on regulation in the water sector examined the effectiveness of the regulatory regime in delivering long-term objectives and attracting the investment needed in the sector. Based on the NAO report, the PAC will hear from experts and senior officials from Defra, the Environment Agency and Ofwat on subjects including outcomes the industry needs to achieve and levels of investment required, and the current effectiveness of regulation. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee is unable to consider or assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues . If you have evidence on these issues please submit it here by 23:59 on Monday 26 May 2025. Show less

2 Recommendations

28 Conclusions

1 Report

1 Oral session

4 Letters

1 Event

Activity timeline 8 events

27 Apr
2026

Correspondence

Letter from the Department for the Environment, Food and Rural Affairs and OFWAT relating to Committee follow-up to the 22 January 2026 evi…

2 Feb
2026

Correspondence

Letter from the Permanent Secretary at the Department for Environment, Food and Rural Affairs relating to Water Sector Regulation, 29 Janua…

1 Dec
2025

Correspondence

Letter from the Chair to the Permanent Secretary at the Department for the Environment, Food and Rural Affairs relating to a follow up to t…

15 Oct
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Forty-second report from Session 2024-26

18 Jul
2025

Report published

42nd Report - Water sector regulation

16 Jun
2025

Correspondence

Letter to the Chair of the Independent Water Commission relating to the regulation of the water sector, 10 June 2025

9 Jun
2025

Oral evidence

Oral evidence session

9 Jun
2025

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Committee event

Oral evidence sessions 1 session

9 Jun 2025

View on parliament.uk

Dame Tamara Finkelstein DBE · Department for Environment, Food and Rural Affairs David Black · Ofwat David Henderson · Water UK David Hill · Department for Environment, Food and Rural Affairs Dr Mike Keil · Consumer Council for Water John Earwaker · First Economics Philip Duffy · Environment Agency

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
42nd Report - Water sector regulation	HC 824	18 Jul 2025	30	Responded

Recommendations & Conclusions

1 result

3 Conclusion Deferred

42nd Report - Water sector regulat…

Publish monthly list of housing and commercial developments delayed or blocked by Environment Agency

Defra and the Environment Agency have been far too slow in planning for the future and this now hinders economic growth. Recommendations this Committee made to Defra five years ago around accelerating the pace of investment have not been acted … Read more Defra and the Environment Agency have been far too slow in planning for the future and this now hinders economic growth. Recommendations this Committee made to Defra five years ago around accelerating the pace of investment have not been acted on, which has proved to be shortsighted. Water companies now need to build 10 new reservoirs, when none have been built in the last 30 years. Meanwhile, supply shortages and failure to increase wastewater treatment capacity are already having a negative impact on housing and business development. The EA has slowed development plans for new homes in key areas including Cambridge and Oxford due to concerns about capacity in water and wastewater systems. Neither Defra nor the EA could tell us how many proposed new homes have been delayed or denied planning permission due to concerns about water or wastewater. We are aware of one major commercial investment in the east of the country whose planning permission was turned down due to insufficient water supplies. Current approaches to finding solutions, such as Defra’s new minister-led taskforce and cross-regulator work to support infrastructure development, are focussed on large infrastructure projects. But housing plans may change more quickly than current planning cycles, or the price review funding cycle, currently allow. recommendation a. The Environment Agency should write to the Committee, alongside the Treasury Minute response to this report, setting out how it will work with water companies to ensure planning solutions are prioritised prior to planning applications, to limit delays to development brought about by objections. 4 b. By the end of 2025, the Environment Agency must be in a position to publish a list of all housing and commercial developments, including a list of the number of homes, that it is delaying or blocking. It should update this list every month. c. The Environment Agency should ensure it is actively monitoring and enforcing compliance with discharge perm Show less

Government Response

The government agreed with the recommendation, stating that the Environment Agency (EA) already monitors and enforces compliance with discharge permits. However, it did not commit to the specific requests for the EA to write to the Committee or publish a monthly list of delayed developments, instead referring to water company investment and Ofwat's proposed mid-AMP growth reopener.

HM Treasury

View details

Government Response AI assessment · 30 of 2 classified

Accepted 8

Acknowledged 21

Deferred 1

Total 2 recs + 28 conclusions

Correspondence 4 letters

27 Apr 2026 To committee Letter from the Department for the Environment, Food and Rural Affairs and OFWAT relating to Committee follow-up to the 22 January 2026 evidence session, 20 April 2026

Parliament page

2 Feb 2026 To committee Letter from the Permanent Secretary at the Department for Environment, Food and Rural Affairs relating to Water Sector Regulation, 29 January 2026

Parliament page

1 Dec 2025 To committee Letter from the Chair to the Permanent Secretary at the Department for the Environment, Food and Rural Affairs relating to a follow up to the Committee’s Forty-second Report on Water sector regulation, 01 December 2025

Parliament page

16 Jun 2025 From committee Letter to the Chair of the Independent Water Commission relating to the regulation of the water sector, 10 June 2025

Parliament page