The Water Reform Bill single regulator England proposal is expected to form a major part of the King’s Speech on 13 May, signalling what could become the most significant restructuring of the water sector since privatisation.
According to government plans first outlined in 2025, the legislation would abolish Ofwat and establish a new unified regulator responsible for oversight of water quality, environmental performance, economic regulation and customer protection across England.
The announcement is expected as Prime Minister Sir Keir Starmer seeks to reset the government’s agenda following difficult local election results and growing public concern over sewage pollution, water company performance and rising household bills.
A single regulator for the entire water system
Under the proposed reforms, water-related functions currently split between Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate would be consolidated into a single authority.
The government argues the current structure has created overlapping responsibilities, regulatory gaps and conflicting priorities that have undermined accountability across the sector.
Speaking when the proposals were first announced in July 2025, Environment Secretary Steve Reed described the current framework as a “merry-go-round of regulators blaming each other” for failures within the water system.
The new regulator would reportedly be tasked with balancing environmental enforcement, customer protection, drinking water standards and long-term infrastructure investment under one organisation.
Pressure for reform after years of criticism
The proposed reforms come after sustained criticism of the water industry over sewage discharges, leakage, executive bonuses and rising customer bills.
Ofwat has faced increasing scrutiny from campaigners, environmental groups and politicians who argue regulation has failed to prevent infrastructure decline while allowing significant shareholder returns.
The government has already introduced measures including the Water (Special Measures) Act, stronger pollution enforcement powers and restrictions on bonuses for water executives linked to environmental performance.
Alongside regulatory reform, ministers have pointed to a planned £104 billion investment programme aimed at upgrading ageing pipes, expanding sewage treatment capacity and improving water infrastructure resilience.
What the Water Reform Bill single regulator England proposal could mean for the sector
The Water Reform Bill single regulator England proposal could fundamentally reshape how the water industry is governed.
Supporters of the reform argue that combining economic and environmental regulation could create clearer accountability and reduce delays in decision-making.
Utilities and investors are also likely to watch closely for signals around future enforcement powers, infrastructure funding expectations and long-term regulatory certainty.
However, the scale of the proposed changes may also create uncertainty during any transition period, particularly given the complexity of merging responsibilities across multiple organisations.
The proposals are expected to generate significant debate across the sector, including over how the new regulator would balance environmental enforcement with affordability and infrastructure investment.
For more on utility reform and infrastructure policy, visit our Legislation & Governance coverage.
Pollution targets and infrastructure investment remain central
The government has linked the reforms to wider environmental commitments, including a target to halve sewage pollution from water companies by 2030.
Additional measures announced previously include increased enforcement funding for the Environment Agency, expanded inspections of treatment works and reinvestment of water company fines into local environmental projects.
There are also plans to strengthen the “polluter pays” principle, allowing regulators to recover more enforcement costs directly from companies responsible for environmental breaches.
As climate pressures, ageing infrastructure and public scrutiny continue to intensify, the forthcoming legislation could mark a defining moment for the future direction of the UK water industry.
Further updates following the King’s Speech can be found in our Water Management section.
