Powerful water ombudsman to support customers with complaints
Source: gov.uk (2025-07-21)

Environment Secretary Steve Reed to establish consumer champion with legal powers as part of 'root and branch' reform

Water customers will have more support than ever before when faced with leaking pipes, incorrect bills or water supply issues, Environment Secretary Steve Reed has announced today (Monday 21 July)

It comes as the government is set to reestablish partnership between water companies, investors and communities to keep our waters clean.

The government will create a water ombudsman with legal powers to protect customers in disputes with their water company. Customers will be able to use a single, free point of contact.

It will build on the Consumer Council for Water’s role, which is currently voluntary for water companies to follow. The changes will bring dispute resolution processes for water in line with other utilities – like energy – and are part of the government’s actions to put customers at the heart of water regulation.

Steve Reed is expected to announce ‘root and branch’ reforms on Monday to clean up rivers, lakes and seas and make the water sector one of growth and opportunity that serves hard-working families and businesses, as part of our Plan for Change.

He is expected to make assurances that government action will protect hardworking families from massive water bill hikes in future.

In a speech following the report’s publication, Environment Secretary Steve Reed is expected to say:

The water industry is broken. Our rivers, lakes and seas are polluted with record levels of sewage. Water pipes have been left to crumble into disrepair. Soaring water bills are straining family finances.

Today’s final report from Sir Jon Cunliffe’s Independent Water Commission offers solutions to fix our broken regulatory system so the failures of the past can never happen again.

The government will introduce root and branch reform in the biggest overhaul of water regulation in a generation.

We are establishing a new partnership where water companies, investors, communities and the government will work together to clean up our rivers, lakes and seas for good.

The Secretary of State has pledged that the government will cut sewage pollution in half within five years, making our rivers the cleanest since records began.

The government has already taken decisive action to clean up England’s waterways.
- Record investment: with £104 billion to upgrade crumbling pipes and build sewage treatment works across the country.
- Ringfence customers’ bills for upgrades: customer bills earmarked for investment must now be spent on new sewage pipes and treatment works – not spent on shareholder payments or bonuses (https://www.gov.uk/government/news/government-announces-first-steps-to-reform-water-sector).
- Reinvesting company fines into local projects: with over £100million being invested (https://www.gov.uk/government/news/government-to-invest-over-100m-in-water-company-fines-to-local-environmental-projects) into local clean-up projects in communities.
- Largest budget for water regulation: the Environment Agency received a record £189 million (https://www.gov.uk/government/news/largest-ever-budget-for-water-regulation) to fund hundreds of enforcement officers to inspect and prosecute polluting water companies.
- Polluter Pays: companies will now cover the cost of prosecutions and successful investigations into pollution incidents, enabling the regulator to hire more staff and pursue further enforcement activity.
- Banning wet wipes containing plastic in England: introducing legislation to reduce microplastics in our waters.
- The Water (Special Measures) Act: banned unfair bonuses (https://www.gov.uk/government/news/governments-new-law-sees-unfair-bonuses-banned-for-six-water-companies-with-immediate-effect) for ten polluting water bosses this year and threatened prison sentences for law-breaking executives.
We will work with the Welsh government to ensure reforms protect water customers across both England and Wales.

Notes to editors:

Last October, the Environment Secretary asked the former Deputy Governor of the Bank of England, Sir Jon Cunliffe, to undertake the biggest review of the water sector since privatisation. The final report will be published on Monday 21 July.

An ombudsman to champion customers

The current system for dealing with complaints lacks any teeth and too often leaves customers with nowhere to go. With no binding consumer watchdog, customers risk being left stranded.

Water customers shouldn’t have to figure out who to contact and how to contact them if something has gone wrong – they should know exactly where to turn and be confident their problem will be listened to and resolved.

The new measures will establish a new level playing field between customers and companies. This builds on our reforms to double automatic payments when water companies fail to deliver adequate standards of service and place customers at the heart of water company purpose.

Following the Independent Water Commission’s final report, we will look at the CCW’s role as part of a reformed regulator. We’re clear there will be no additional ALB’s as part of our productive and agile state agenda.