The government says that 2025 has been a landmark year of action on water, with the biggest reforms in a decade and decisive action taken to reset the water sector, strengthen regulation and drive long-term investment.

The government’s reflection on a year of cleaning up the nation’s rivers, lakes and seas follows last month’s results showing that 93% of bathing sites meet standards for swimming - an encouraging improvement on last year.

During 2025 the government has:

• Passed the landmark Water (Special Measures) Act, introducing the toughest enforcement powers in a decade, including criminal liability for water bosses who cover up illegal sewage spills and the power to ban unfair bonuses, which has seen more than £4 million pounds in bonuses banned across six water companies this year.
• Ringfenced water company investment, ensuring customers’ money is spent on fixing pipes, reducing sewage spills and improving water quality, not dividends or bonuses.
• Given the Environment Agency teeth, allowing the regulator to recover enforcement costs from polluters, significantly boost inspections, and issue penalties more quickly without having to direct resources to lengthy investigations.
• Improved transparency, requiring real-time monitoring at every emergency overflow so the public can see what is happening in their local waters.
• Boosted protections for customers, doubling compensation when basic water services fail and making it easier for vulnerable households to access bill support.

The measures are underpinned by over £104 billion in private investment secured at the end of last year for the 2025-30 AMP8 programme to upgrade water infrastructure – the largest programme since privatisation

The government is also reforming bathing water regulations to lift prescriptive rules on bathing seasons and de-designation; and to protect public health.

Water Minister Emma Hardy commented:

“Boxing Day swims are a brilliant reminder of how much people value their rivers, lakes and seas.

“This year we’ve taken tough, long-overdue action to protect them – increasing bathing water quality, blocking millions in bonuses and unlocking record investment to clean up our waterways.

“And we’re not stopping there. Next year we will set out long-term reforms to build upon this work and create a water sector fit for the future.”

The government will publish a Water White Paper in the new year, setting out comprehensive long-term plans to reform the water sector.

It follows the announcement earlier this year of plans to abolish Ofwat and replace the current fragmented system with a single, powerful water regulator to give investors clarity, water companies clear expectations, and customers renewed confidence in the system.