Water regulators and the government have failed to provide a trusted and resilient industry at the same time as bills rise, the state spending watchdog has said.
Public trust in the water sector has reached a record low, according to a report from the National Audit Office (NAO) on the privatised industry.
Not since monitoring began in 2011 has consumer trust been at such a level, it said.
The last time bills rose at this rate was just before the global financial crash, between 2004-05 and 2005-06.
Regulation failure
All three water regulators – Ofwat, the Environment Agency and Drinking Water Inspectorate – and the government department for environment, food and rural affairs (Defra) have played a role in the failure, the NAO said, adding they do not know enough about the condition or age of water infrastructure and the level of funding needed to maintain it.
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Since the utilities were privatised in 1989, the average rate of replacement for water assets is 125 years, the watchdog said. If the current pace is maintained, it will take 700 years to replace the existing water mains.
Image: The NAO said the government and regulators have failed to drive sufficient investment into the sector. File pic: PA
Despite there being three regulators tasked with water, there is no one responsible for proactively inspecting wastewater to prevent environmental harm, the report found.
Instead, regulation is reactive, fining firms when harm has already occurred.
Financial penalties and rewards, however, have not worked as water company performance hasn’t been “consistent or significantly improved” in recent years, the report said.
‘Gaps, inconsistencies, tension’
The NAO called for this to change and for a body to be tasked with the whole process and assets. At present, the Drinking Water Inspectorate monitors water coming into a house, but there is no entity looking at water leaving a property.
Similarly no body is tasked with cybersecurity for wastewater businesses.
As well as there being gaps, “inconsistent” watchdog responsibilities cause “tension” and overlap, the report found.
The Environment Agency has no obligation to balance customer affordability with its duty to the environment when it assesses plans, the NAO said.
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Thames Water boss can ‘save’ company
Company and investment criticism
Regulators have also been blamed for failing to drive enough funding into the water sector.
From having spoken to investors through numerous meetings, the NAO learnt that confidence had declined, which has made it more expensive to invest in companies providing water.
Even investors found Ofwat’s five-yearly price review process “complex and difficult”, the report said.
Financial resilience of the industry has “weakened” with Ofwat having signalled concerns about the financial resilience of 10 of the 16 major water companies.
Most notably, the UK’s largest provider, Thames Water, faced an uncertain future and potential nationalisation before securing an emergency £3bn loan, adding to its already massive £16bn debt pile.
Water businesses have been overspending, with only some extra spending linked to high inflation in recent years, leading to rising bills, the NAO said.
Over the next 25 years, companies plan to spend £290bn on infrastructure and investment, while Ofwat estimates a further £52bn will be needed to deliver up to 30 water supply projects, including nine reservoirs.
Image: The NAO said regulators do not have a good understanding of the condition of infrastructure assets
What else is going on?
From today, a new government law comes into effect which could see water bosses who cover up illegal sewage spills imprisoned for up to two years.
Such measures are necessary, Defra said, as some water companies have obstructed investigations and failed to hand over evidence on illegal sewage discharges, preventing crackdowns.
Meanwhile, the Independent Water Commission (IWC), led by former Bank of England deputy governor Sir Jon Cunliffe, is carrying out the largest review of the industry since privatisation.
What the regulators and government say?
In response to the report, Ofwat said: “The NAO’s report is an important contribution to the debate about the future of the water industry.
“We agree with the NAO’s recommendations for Ofwat and we continue to progress our work in these areas, and to contribute to the IWC’s wider review of the regulatory framework. We also look forward to the IWC’s recommendations and to working with government and other regulators to better deliver for customers and the environment.”
An Environment Agency spokesperson said: “We have worked closely with the National Audit Office in producing this report and welcome its substantial contribution to the debate on the future of water regulation.
“We recognise the significant challenges facing the water industry. That is why we will be working with Defra and other water regulators to implement the report’s recommendations and update our frameworks to reflect its findings.”
A Defra spokesperson said: “The government has taken urgent action to fix the water industry – but change will not happen overnight.
“We have put water companies under tough special measures through our landmark Water Act, with new powers to ban the payment of bonuses to polluting water bosses and bring tougher criminal charges against them if they break the law.”
Water UK, which represents the water firms, has been contacted for comment.
Three men have been jailed for a combined total of 99 years for plotting to murder a member of a gang that carried out Britain’s biggest-ever cash robbery.
Paul Allen, 46, was shot twice as he stood in his kitchen in Woodford, east London, on 11 July 2019.
He was a member of the Securitas heist gang that stole £54m from a cash depot in Tonbridge, Kent, in 2006.
The former cage fighter was living in a large detached rented house with his partner and three young children after being released from an 18-year prison sentence over the raid.
The attack at his home has left him paralysed from the chest down.
Louis Ahearne, 36, Stewart Ahearne, 46, and Daniel Kelly, 46, denied conspiring to murder Allen but were found guilty last month following a trial at the Old Bailey.
The trio were sentenced at the Old Bailey in central London on Friday.
Kelly was sentenced to 36 years in prison and an extra five years on licence, Louis Ahearne was jailed for 33 years, and his sibling Stewart Ahearne – 30 years.
Image: Damage to the kitchen door. Pic: Met Police/PA
Image: A bullet casing found in the back garden. Pic: Met Police
Prosecutors did not give a motive for the murder plot, though they described the victim as a “sophisticated” career criminal.
Detectives said the shooting could seem like “the plot [of] a Hollywood blockbuster” but added it was actually “horrific criminality” from “hardened organised criminals”.
In her sentencing remarks, the judge said she believed the trio “were motivated by a promise of financial gain”.
Judge Sarah Whitehouse KC said: “I have no doubt that this agreement to murder Paul Allen involved other people apart from the three of you and that you three were motivated by a promise of financial gain.
“The culpability of each one of you is very high.
“The harm caused to the victim was very serious – indeed, short of killing him it could hardly be more serious. He is currently paralysed and relies on others for every single need.”
The shooting was just the latest act in a long list of criminal deeds. The day before, Kelly and Louise Ahearne used a rented car to carry out a burglary in Kent, accessing the gated community by pretending to be police officers.
A month before that, the trio had stolen more than $3.5m (£2.78m) worth of Ming dynasty antiques from the Museum of Far Eastern Arts in Geneva, for which the Ahearne brothers had been jailed in Switzerland.
Kelly is also wanted in Japan over the robbery of a Tokyo jewellery store in 2015 in which a security guard was punched in the face.
A man has been jailed for life for the murder of university lecturer Claire Chick.
Paul Butler was sentenced to a minimum term of 27 years for killing his estranged wife after a six-month campaign of stalking and harassment when he refused to accept their relationship was over.
Ms Chick, 48, was found seriously injured on West Hoe Road in Plymouth just before 9pm on 22 January. She was taken to hospital, but died the next day.
Previously known as Claire Butler, Ms Chick worked at the University of Plymouth.
Image: Paul Butler has been jailed for murder. Pic: Devon & Cornwall Police
She died after a frenzied attack outside her home – the attack a culmination of months of harassment, stalking and violence at the hands of Butler.
Following her death, Devon and Cornwall Police made a referral to the police watchdog due to previous contact prior to her death.
Jo Martin KC, prosecuting, said Ms Chick had made six statements to the police about Butler and he had been arrested three times.
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In her final statement to police the day before he killed her outside her own home, she said: “I only feel that Butler will kill me if further action is not taken. I am in fear of leaving my house.”
Butler was arrested around 20 miles away in the Liskeard area on 24 January.
He was sentenced on Friday at Plymouth Crown Court, having previously pleaded guilty to murder, and to one charge of possession of a bladed article.
‘I loved Claire’
The family of Ms Chick told the court how her murder left a “huge void” in their lives.
Her eldest daughter, Bethany Hancock-Baxter, described Butler as “evil”.
She said: “I want this evil man to listen to me. I want you to know what you have done to us as a family.
“Despite all the hate I have for you, I cannot bring myself to do what you did to my mum – that’s because I am not evil like you.”
Her sister, Lydia Peers, said Butler was a “parasite”.
After her short-lived marriage to Butler, Ms Chick began a relationship with another man, Paul Maxwell.
Mr Maxwell spoke from the witness box and repeatedly stared at the defendant as he spoke. Butler stared back at him.
“I loved Claire. She was beautiful, funny and kind,” Mr Maxwell said.
This breaking news story is being updated and more details will be published shortly.
Following the funeral, and after nine days of mourning, cardinals from around the world will gather in the Vatican’s Sistine Chapel to cast their votes, with white smoke announcing to the world when a new pope has been elected.
Image: Cardinal Vincent Nichols speaks to Sky’s Anna Botting
Cardinal Nichols told Sky’s Anna Botting: “I hope nobody goes into this conclave, as it were, with the sole purpose of wanting to win. I think it’s very important that we go in wanting to listen to each other… It has to be together, trying to sense what God wants next. Not just for the church.”
He described the procession that took Pope Francis to lie in state as “the most moving thing I’ve ever attended here”.
Describing the Pope as a “master of the gesture and the phrase”, he also recalled the pontiff’s last journey away from the Vatican.
Cardinal Nichols said Pope Francis had visited the Regina Coeli prison, telling the inmates: “You know, except for the grace of God, it could well have been me … Don’t lose hope, God has you written in his heart.”
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‘Pope touched the hearts of millions’
The Pope later told his doctor his last regret was not being able to wash the feet of the prisoners during that visit.
Becoming emotional, he also said the final message he would like to have given Pope Francis is “thank you”.
The 88-year-old died peacefully on Easter Monday, the Vatican confirmed.
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Where will Pope Francis be buried?
Talking about the seating plan at the funeral, Cardinal Nichols said he understood it to be “royalty first, then heads of state, then political leaders”.
Worldwide geopolitical tensions mean that many eyes will be on interactions between heads of state at the event, with particular focus on Donald Trump and Volodymyr Zelenskyy following their tense meeting at the Oval Office in February.
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Pope’s cause of death confirmed .
Looking back at the last papal funeral, Cardinal Nichols described the seating of the then Prince Charles one seat away from Zimbabwean present Robert Mugabe as “obviously a little bit tense”.
Cardinal Nichols explained event would be “exactly the same Catholic rite as everyone else – just on a grander scale”.
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1:52
3D map shows pope’s funeral route
In a break from tradition, Pope Francis will be the first pope in a century to be interred outside the Vatican – and will instead be laid to rest at his favourite church, Santa Maria Maggiore Basilica in Rome’s Esquilino neighbourhood.
He will also be buried in just one simple wooden coffin, instead of the traditional three coffins which are usually used for pontiffs.
Born in Crosby near Liverpool, Cardinal Vincent Nichols hoped to be a lorry driver as a child – but as a teenager reportedly felt the calling to join the priesthood while watching Liverpool FC.
As cardinal, he is known for leading the church’s work tackling human trafficking and modern slavery, for which he received the UN Path to Peace Award.
He was criticised by the UK’s Independent Inquiry into Child Sexual Abuse, which said he “demonstrated a lack of understanding” of the impact of abuse and “seemingly put the reputation of the church first”.
Cardinal Nichols, responding to the findings, previously told Sky News he was “ashamed at what has happened in the context of the Catholic Church” and promised to improve the church’s response.
He has appeared to rule himself out of the running for pope, telling reporters he was “too old, not capable”.