Ofwat has issued a statement this morning confirming that it will be business-as-usual for the regulator’s £600 million Innovation Fund activities.
Ofwat has published the statement clarifying the position following the publication last week of the Cunliffe report which recommended that Ofwat should be abolished and replaced by a new single integrated regulator.
The UK government has confirmed that 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 government will publish a white paper in the autumn and bring forward legislation in 2026. The 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 £600 million Innovation Fund. Ofwat commented:
“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.”
Last month the £600 million Ofwat Innovation Fund published its latest learning report, From source to sea: harnessing nature and communities for whole catchment innovation, highlighting nature’s role in solving water sector challenges.
Last month Ofwat also separately awarded an £18.4 million contract for Innovation Fund AMP8 delivery partners to support it in delivering the Innovation Fund and aspects of the Water Efficiency Fund during the AMP 8 investment period running from April 2025 to March 2030.
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