Public failed by water regulators and government – as bills rise, spending watchdog says

Published

6 months ago

April 25, 2025

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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.

At the same time, households face double-digit bill hikes over the next five years.

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.

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.

Water firms have grappled with leaky pipes and record sewage outflows into UK waterways in recent years, with enforcement action under way against all wastewater companies.

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.

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.

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.

UK

PPE Medpro partners open to settlement over £122m COVID gowns contract breach

Published

15 hours ago

October 11, 2025

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PPE Medpro partners open to settlement over £122m COVID gowns contract breach

Partners of a company linked to Baroness Michelle Mone have said they are open to a possible settlement with the government after the company was found to have breached a £122m PPE contract.

The Department of Health and Social Care (DHSC) had accused PPE Medpro of providing 25 million “faulty”, non-sterile gowns during the COVID pandemic.

The High Court ruled earlier this month that it must pay back a £121.9m sum, the price of the gowns.

PPE Medpro, a consortium led by Lady Mone‘s husband Doug Barrowman, filed to enter administration earlier this month.

In a statement on Friday, Mr Barrowman said: “The consortium partners of PPE Medpro are prepared to enter into a dialogue with the administrators of the company to discuss a possible settlement with the government.”

PPE Medpro has spent £4.3m defending its position.

It said offers to settle on a no-fault basis had been made, including the remake of 25 million gowns, or a £23m cash equivalent, which were rejected.

The consortium was awarded government contracts by the former Conservative administration to supply personal protective equipment (PPE) during the pandemic after Lady Mone recommended it to ministers.

It insists that it provided all 25 million gowns and disputes that the gowns were not sterile.

It is understood the partners want to resolve the issue, and administrators have been urged to approach the government to reach an agreement.

In the High Court ruling, Mrs Justice Cockerill said the gowns “were not, contractually speaking, sterile, or properly validated as being sterile”. This meant they could not be used in the NHS.

Barristers for PPE Medro claimed it had been “singled out for unfair treatment” and accused the government of “buyer’s remorse”.

It claimed the gowns had become defective because of the conditions they were kept in after being delivered. It also said the court made its ruling on a technicality.

Lady Mone branded the judgement a win for the “establishment”, while Mr Barrowman said it was a “travesty of justice”.

Baroness Mone, who created the lingerie brand Ultimo, was made a Conservative peer in 2015.

She now says she has “no wish to return” to the House of Lords.

UK

Women risking breast cancer by ‘always putting ourselves last’, says Liz Hurley

Published

15 hours ago

October 11, 2025

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Women risking breast cancer by 'always putting ourselves last', says Liz Hurley

Liz Hurley has encouraged women to check themselves for breast cancer – and warned some are not because they “are scared that it’s self-indulgent to spend time on themselves”.

The British actress and model, who has been a global ambassador for the Estee Lauder Companies’ Breast Cancer Campaign for 30 years, told Sky News’ Jacquie Beltrao the demands of everyday life mean women “always put ourselves last”.

“We’re doing stuff for kids, for husbands, for mothers, for in-laws. There’s so much that we have to do that we tend to come last,” she said.

Hurley, whose grandmother died of breast cancer, said she finds it helps by thinking of breast checks as a way to “keep ourselves healthy in order to continue to take care of everybody else”.

That way, it “doesn’t seem self-indulgent or taking time away from something else, it seems really important”.

Checking one’s breasts “takes two minutes”, she added, or “about the same length of time as brushing your teeth”.

More than a third of women in the UK do not take up the first mammogram appointment they are offered, and a recent study of 500,000 women from Sweden found a similar non-attendance rate there.

More than 11,000 people die from breast cancer every year in the UK, or 31 each day, Cancer Research UK said.

That makes it the second most common form of cancer death, accounting for 7% of all cancer deaths, the charity said.

Asked whether some of the messaging had “fallen on deaf ears”, Hurley said attending screenings, which are free on the NHS, is “definitely advised”, and she suggested all women should familiarise themselves with their breasts.

In the past, the illness was seen as “a disease for older ladies. And we didn’t understand that younger women also get diagnosed. That’s been a lot in the news lately”, Hurley said.

“There appear to be more women, younger women being diagnosed. And that could well be one of the reasons is that people are more breast aware, more self-aware.”

She told Ms Beltrao, who is a breast cancer survivor, people “have seen you on television talking about breast cancer”.

As a result of more awareness, she said, women have “begun to understand that it can never be too early to start checking your own breasts and to familiarise yourself [with them].

“When you’re younger and you’re not yet having regular mammograms, you do really have to be aware of your own breasts to be able to see if there’s a change, feel if there is a change and go to your doctor.”

UK

‘New era’ for British passports as King’s coat of arms appears on cover

Published

15 hours ago

October 11, 2025

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'New era' for British passports as King's coat of arms appears on cover

The King’s coat of arms will be on the front of all new British passports from December, the Home Office has announced.

The inside pages have also been updated to include images of natural landscapes from all four UK nations, including Ben Nevis, the Lake District, Three Cliffs Bay, and the Giant’s Causeway.

The Home Office said the new passport is the first wholly new design in five years, and it will be the “most secure passport ever produced”.

It will include the latest anti-forgery technology, including new holographic and translucent features.

The updated features will improve verification and make passports significantly more resistant to forgery or tampering, the Home Office said.

Migration and citizenship minister Mike Tapp said: “The introduction of His Majesty’s arms, iconic landscapes, and enhanced security features marks a new era in the history of the British passport.

“It also demonstrates our commitment to outstanding public service – celebrating British heritage while ensuring our passports remain among the most secure and trusted in the world for years to come.”

The Home Office has confirmed that passports bearing Queen Elizabeth II‘s coat of arms will remain valid until their printed expiry date.

However, it advised travellers to check their passports’ validity and renew them well in advance of any upcoming trips.

The first modern British passport was introduced over a hundred years ago, in 1915.