Committee publication · Correspondence · 11 November 2025
Correspondence from Emma Hardy MP, Minister for Water and Flooding, regarding the evidence session on 9 September, dated 31 October 2025
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
Emma Hardy MP, Minister for Water and Flooding, responds to the EFRA Committee's 9 September evidence session questions. She addresses water regulation reform, Thames Water's status, abstraction licensing enforcement, and climate adaptation. The government commits to a White Paper on water sector reform and emphasizes establishing a single water regulator, strengthened enforcement powers, and £2.3bn annual investment in farmer climate resilience.
Key findings
- Government will establish a single, powerful water regulator to replace fragmented approach; further details in forthcoming White Paper
- Thames Water creditor classification is Ofwat's matter; company status under ongoing review with no special administration application criteria explicitly met
- Environment Agency inspected 3,169 abstraction licences in 2024/25 and took enforcement action including Norfolk farmer fine and £28,000 penalty against Ilchester Estate
- Defra investing £2.3bn annually through Farming and Countryside Programme to help farmers adapt to climate change through water efficiency, flood risk management, and nature-based solutions
- Government exploring measurable climate adaptation objectives with guidance from Climate Change Committee's Adaptation Committee (received 15 October 2025); fourth National Adaptation Programme will incorporate stronger resilience targets
Tone
ProceduralTopics
Key actors
Emma Hardy MP, Alistair Carmichael MP, Environment Agency, Ofwat, Thames Water, Climate Change Committee, Natural England, Drinking Water Inspectorate
Notable line
“The current fragmented approach to water regulation has led to contradictory and competing priorities. The reforms will ensure regulation is in lock step to deliver for customers and the environment.”
Key Quotes
“The Government has committed to establishing a single, powerful regulator for the entire water sector that will stand on the side of customers.”
“The current fragmented approach to water regulation has led to contradictory and competing priorities. The reforms will ensure regulation is in lock step to deliver for customers and the environment.”
“We have also been very clear that the level of bill hikes we saw in December should not happen again.”
“The Water (Special Measures) Act has provided the most significant increase in enforcement powers to the regulators in a decade, giving existing regulators the teeth they need to take tougher action against water companies.”
“Through the Farming and Countryside Programme, we are investing over £2.3bn annually to support farmers and land managers to adapt to climate change, restore nature, and build long-term resilience.”
“Climate change is already reshaping the risks facing farmers and food producers, particularly through more frequent and intense flooding, droughts, and water supply pressures.”
“Defra has ownership of climate adaptation across government which includes providing the framework …”
Source · parliament.uk record ↗