logo
Landmark review calls for Ofwat to be scrapped in favour of powerful single regulator

Landmark review calls for Ofwat to be scrapped in favour of powerful single regulator

Independent7 days ago
The water regulator should be scrapped and replaced with a single body to restore trust in the beleaguered industry, a landmark review has concluded.
Ministers should ditch Ofwat and simplify the system with a powerful regulator looking at every area, according to the Independent Water Commission's final report.
The report, led by former Bank of England deputy governor Sir Jon Cunliffe, recommended far-reaching changes to the way the water system is regulated as it called the current landscape "fragmented and overlapping".
In its 88 recommendations, scrapping Ofwat in favour of one powerful regulator is the most significant change to the sector.
It also advised removing the regulatory roles of the Environment Agency and Natural England, which monitor the sector's impact on nature, such as companies illegally dumping sewage into waterways.
The current system has faced intense criticism for overseeing water companies during the years they paid out shareholders and accrued large debts while ageing infrastructure crumbled and sewage spills skyrocketed.
Following the publication of his report, Sir Jon warned water bills will rise by almost a third by the end of the decade.
He told BBC Breakfast: "Bills are going to rise by 30% over the next five years. There are some inescapable facts here. The cost of producing water and dealing with our wastewater is going up. Climate change, higher environmental standards, demographic pressure, the population is going up. Just that need to renew ageing infrastructure.
"The problem comes when you suddenly go from not investing for a long period, to massive investment, in order to catch up. That's really what's driven those huge bill increases that we've seen.
"We need to help the most vulnerable, we also need to smooth that over a long period so that people can cope with the higher costs of water. And the regulators have a really important job in squeezing efficiency, incentivising the companies to be more efficient."
Environment secretary Steve Reed on Sunday said Ofwat was 'clearly failing', in a sign he will accept the recommendation to axe it.
He will also create a new, legally binding water ombudsman, expanding the role of the voluntary Consumer Council for Water and bringing the sector into line with other utilities.
And over the weekend, Mr Reed committed to halving sewage pollution in England's rivers by 2030 thanks to a £104 billion investment from the sector in upgrading infrastructure.
Other recommendations from the commission include stronger consumer advocacy, nine new regional water authorities to deliver on local priorities, significant improvements to environmental regulation and tighter oversight of company ownership and government.
The regional authorities - eight in England and one national authority in Wales - would see current planning responsibilities devolved and resources from regulators transferred to ensure investments reflect local priorities and voices.
It comes after nearly nine months of the commission analysing, researching and engaging with more than 50,000 responses to its call for evidence.
Sir Jon said: "Restoring trust has been central to our work. Trust that bills are fair, that regulation is effective, that water companies will act in the public interest and that investors can get a fair return.
"Our recommendations to achieve this are significant. They include the management of the whole water system, regulation of the water industry, the governance and financial resilience of water companies and a stronger voice for local communities and water customers.
"In this report I have considered what is best for the long-term future of water.
"This is a complex sector with a highly integrated system, responsible for the second-largest infrastructure programme in the UK.
"Resetting this sector and restoring pride in the future of our waterways matters to us all."In countless conversations in the last nine months I have been struck by the urgent need and passion for change."Doing this will require hard work, strong leadership and sustained commitment. But it can and must be done."
The report also shares recommendations on implementation, including which reforms can be delivered in the short term and which require new primary legislation.
In a speech responding to Sir Jon's report later on Monday, the Environment Secretary is set to welcome the commission's recommendations to ensure "the failures of the past can never happen again".
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'
Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'

The Guardian

time28 minutes ago

  • The Guardian

Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'

Conservative and Liberal Democrat peers have been accused of trying to block stronger rights for millions of workers amid a growing campaign by business leaders to water down Labour's zero-hours contract plans. In a blow for the government, the Lords last week voted to curtail the manifesto promise to give workers a right to a guaranteed hours contract and day-one protections against unfair dismissal. Setting up a showdown with the upper chamber, the Lords passed a series of amendments to the employment rights bill that will must be addressed by ministers when MPs return from their summer break. In an angry intervention on Monday, the general secretary of the Trades Union Congress, Paul Nowak, said the Lords was 'doing the bidding of bad bosses' and ought to 'get out of the way' of the plans. 'The sight of hereditary peers voting to block stronger workers' rights belongs in another century. It's plain wrong,' he said. Under the Lords' amendments, a requirement for employers to offer zero-hours workers a contract covering a guaranteed number of hours would be shifted to place the onus on staff to ask for such an arrangement. Protections against unfair dismissal from the first day of employment – which the government plans to reduce from the current level of two years – would be extended to six months, and changes to free up trade unions would be curtailed. The bill will return to the Commons in September for MPs to consider the amendments. The two houses then continue to vote on the changes in a process known as 'ping-pong' until a way forward is agreed. The amendments were put forward by the Lib Dem Lord Goddard, a former leader of Stockport council, and two Tory peers: Lord Hunt, who is a shadow business minister, and Lord Sharpe, a former investment banker. Hunt did not respond to a request for comment. Sharpe said: 'Keir Starmer's unemployment bill is a disaster for employees as much as it is a threat to business. Labour politicians who have never worked in business are destroying the economy. Only the Conservatives are listening to business and making the case for growth.' Goddard said he feared Labour's 'rushed bill' would be bad for workers in small businesses and on family-owned farms. 'They were badly let down by the Conservatives, and Labour seems to have a blind spot when it comes to farms and small businesses, too. 'We support the bill as a whole and have worked constructively to try to improve it. It's a shame to see the government getting upset that we didn't simply give them a blank cheque.' Employers groups welcomed the changes, saying the Lords was responding to business concerns. Helen Dickinson, the chief executive of the British Retail Consortium, said: 'Putting forward positive, practical and pragmatic amendments to the employment rights bill [will] help to protect the availability of valuable, local, part-time and entry level jobs up and down the country.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Industry chiefs have stepped up lobbying against the workers' rights changes, warning that companies were already slashing jobs and putting up prices in response to tax rises in chancellor Rachel Reeves's autumn budget. Dickinson said there was 'further to go' to curb the employment rights bill. 'Even with these amendments accepted, retailers remain worried about the consequences for jobs from other areas of the bill.' Union leaders have, though, urged ministers to stand firm. A recent mega poll of 21,000 people commissioned by the TUC found a majority of UK voters – including Conservative, Lib Dem and Reform UK supporters – backed a ban on zero-hours contracts. Nowak said the government plan included 'commonsense protections' that a majority of people wanted to see become law. 'These peers are not just out of touch, they are actively defying their own voters – and the public at large. The government must stand firm in the face of cynical attacks and deliver the employment rights bill in full.'

Imported dogs could carry disease or behaviour risk, RSPCA warns
Imported dogs could carry disease or behaviour risk, RSPCA warns

The Independent

timean hour ago

  • The Independent

Imported dogs could carry disease or behaviour risk, RSPCA warns

An animal charity has called for stricter regulations on animal rescues importing dogs into the UK, citing concerns about disease risks and behavioural issues Government statistics reveal that in 2023, 320,000 pets were brought into the UK under travel pet schemes and 44,000 entered as commercial imports. RSPCA spokesman David Bowles likened the process to ' Deliveroo for dogs' and called on the Government to tighten regulations on animal rescues. He told the BBC: 'The RSPCA's major concern is these dogs are essentially ticking time bombs – coming over, not being health tested. 'Diseases are now coming in through these dogs. They're affecting not just the dogs that are being imported, they could also affect the dogs already in this country and their owners. 'They've almost set up a Deliveroo for dogs and that is a real problem.' There is no requirement for rescue organisations to be licensed in England, Wales or Northern Ireland. It comes weeks after a bill that aims to stop animal smuggling and cruelty cleared the Commons with cross-party support. Legislation put forward by Liberal Democrat MP Dr Danny Chambers will reduce the number of animals for non-commercial entry into the UK, ban the import of puppies and kittens under six months old or heavily pregnant dogs and cats, and introduce a halt on the import of dogs and cats who have been 'mutilated', including having their ears docked. The MP for Winchester's Animal Welfare (Import of Dogs, Cats and Ferrets) Bill was supported by the Government, and will now proceed to the House of Lords on its passage to becoming law. Dr Chambers said: 'As a vet, I've seen the devastating consequences of puppy smuggling. It's unimaginably cruel to separate puppies and kittens from their mothers at a very young age, and then bring them across borders in substandard conditions where they're then sold for maximum profit by unscrupulous traders who prioritise profit over welfare.' He added: 'Careful consideration has been given to setting these limits, balancing the need to disrupt illegal trade with minimising impact on genuine pet owners. To underpin this, only an owner, not an authorised person, will be permitted to sign and declare that the movement of a dog or cat is non-commercial. He criticised the influence of social media on the increased demand for dogs with docked ears, and a party colleague hit out at the platforms' role in publishing animal abuse. He said: 'One reason that there is such an interest in dogs with cropped ears is that a lot of influencers on Instagram and other social media platforms pose with these dogs or show they have these new dogs with cropped ears. Many people aren't aware that this is a mutilation. 'They think it's how the dogs' ears normally look, and it drives a demand for dogs that look like this.'

Financial Ombudsman Service boss paid £230,000 after ousting
Financial Ombudsman Service boss paid £230,000 after ousting

Times

timean hour ago

  • Times

Financial Ombudsman Service boss paid £230,000 after ousting

The ousted head of the Financial Ombudsman Service received a pay-off of almost £230,000, it has been disclosed in the annual report. Abby Thomas, who left abruptly on 6 February, was paid £229,869 in severance payments on top of her normal salary. The payoff included £100,000 for loss of office, £107,692 in lieu of notice and £22,177 for a period of gardening leave that began on the day she left, the FOS said. MPs on the Treasury select committee have hit out at the manner of her departure and criticised the FOS chairwoman Baroness Manzoor for refusing to answer questions on why Thomas left and whether she was forced out. The FOS, which rules on complaints by consumers about financial services firms and can set compensation orders, is under pressure to reform. Rachel Reeves has pledged to curb its powers so it no longer acts like a regulator after complaints from the industry that it has increased the cost of 'mass redress events'. It has been dealing with a significant rise in claims, mainly related to car finance loans, but also because of concerns about other consumer loans and more people complaining about banks' handling of frauds. Dame Meg Hillier, chairwoman of the Treasury committee, said this month: 'The handling of this situation by the senior leadership has been deeply disappointing.' Thomas, a former Virgin Media executive, served for less than three years. She has been replaced by James Dipple-Johnstone as chief ombudsman and Jenny Simmonds as interim chief executive. Manzoor is due to retire on August 1. The FOS received 450,000 new inquiries in the year to March, up from 330,000. The motor finance industry is braced for a judgment from the Supreme Court this Friday that could determine the scale of compensation payments for failing to disclose commissions paid to dealers.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store