22 Jan 2026
Response to the government's white paper on water:
Dear Environment Secretary Emma Reynolds cc Water Minister Emma Hardy,
The government promised the biggest shake up of the water sector since privatisation. A once-in-a-generation-opportunity.
What you’ve delivered is a stamp of approval on privatised English water companies continuing to rip off the public and damage our environment.
While you’ve used the language this week of “nowhere to hide” the new white paper gives the privatised English water companies everywhere to hide, promising stability, returns, lack of risk and a soft, individualised approach to company failings instead of a fair, consistent benchmark. In other words, it lets shareholders off the hook for the "instability" they themselves have created through their failure to invest in infrastructure since 1989.
The choice you could be making is clear: bring water into public ownership, as supported by 7 out of 10 voters. This is the normal way to run water around the world and evidence shows it leads to cleaner rivers and seas.
The reason stated by the government frequently for not considering public ownership is the cost. However the government paper explaining the thinking on this fails to recognise the fundamentally important argument that buying a profitable asset means the government would own a profitable asset. You would be nationalising the revenue stream from bills.
Every penny of investment into the water industry has come from customers' bills. The only reason we can still afford privatisation is because of the huge bill hikes inflicted on households last year.
The government’s ideological commitment to privatisation flies in the face of all evidence. You have chosen to move the goalposts for the existing private companies instead of looking at best practice around the world and instead of using regulation to take back water.
You made the right decision in asking Ofwat to look at South East Water’s licence. But 30,000 homes without water means that this company has failed in its statutory duties and you – not Ofwat, which is to be replaced anyway at the government’s instruction – are in charge of the regulatory framework for water. We have launched a petition calling on you to withdraw South East Water’s licence immediately and bring it into permanent public ownership.
Shockingly, Thames Water’s creditors are currently asking for permission to pollute outside of current legal limits until 2040. Our new polling shows that Thames Water customers think this is unacceptable. They want the company to be brought into special administration and permanent public ownership, with households, workers and anti sewage groups on the board.
We call on you to tell Ofwat to withdraw Thames Water’s licence and bring the company into permanent public ownership.
The way to fix our broken water system is to genuinely regulate the water companies until they deliver what is needed. If and when they become unprofitable through the process of delivering on their duties, it is your responsibility to allow this to happen, let companies fail as the consequence of appropriate regulation. Then take them into permanent public ownership.
In terms of dealing with the debts owed by these companies, taking back water will help the government achieve far better value for money for the public purse. You can force creditors to take the largest possible haircut through special administration and refinance any remaining debt more cheaply through permanent public ownership.
There is no market in water, it is a natural monopoly. The public understands this and is sick of broken promises.
You cannot simultaneously be tough on the water companies while being easy on the water companies. The answer is to be so tough on the failing water companies that private shareholders no longer want to be involved, then take the companies back, as an asset with a revenue stream that can be used to benefit households and the environment.
If you will never allow a private water company to fail, where is the limit to what these companies can get away with? Please show us that there is a limit by removing Thames Water and South East Water's licences, as a starting point, and bringing them into public ownership.
Yours sincerely
Cat Hobbs, Director, We Own It
