July 28, 2025
The Independent Water Commission has reviewed the water sector in England and Wales and has set out a new direction. The UK government has confirmed it supports the recommendation to establish a new water regulator in England that will bring together Ofwat, the Drinking Water Inspectorate, the water functions of the Environment Agency and Natural England. The Independent Water Commission has also recommended changes to the regulatory arrangements in Wales for the Welsh Government to consider.
The UK government will publish a white paper in the autumn and bring forward legislation in 2026. The UK government has also confirmed that Ofwat will remain in place and continue to operate during the transition to the new regulator.
The government is not revisiting the 2024 price review funding decisions including the £600m Innovation Fund. We will therefore continue delivering our business-as-usual activities, including the Innovation Fund.
The sixth Water Breakthrough Challenge will open on 8 September 2025 as planned.
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