Nationalising water and energy utilities was one of Starmer’s 10 pledges when he made a bid for his party’s leadership in 2020. That made good sense because since privatisation Thames Water has paid out over £10billion in dividends for shareholders, accumulated over £20billion in debt and, as we are all so painfully aware, failed dismally to maintain and repair the water system entrusted to them by Margaret Thatcher in 1989.
And it is still failing. Steve Reed, as Environment Secretary, pledged to reduce sewage spills by 50% in 2024 but Thames Water’s sewage dumping increased by nearly 100% in 2025. Roughly a quarter of our fresh water is still going down the drain due to leaky pipes, and water bills have gone up by more than 40% – a hike unprecedented in any other sector.
But still the Government won’t take Thames Water into Special Administration which is the procedure designed to protect precious essential services like water which cannot be allowed to fail – like banks – remember 2008? Emma Hardy, the new Secretary of State responsible for water, says she won’t implement Special Administration until our taps run dry and our toilets don’t flush.
Well that’s already happening all over London. Last month thousands were left with no water in Holland Park and firefighters were evacuating people from their homes in a rubber dinghy following a mains water pipe burst. In Streatham a primary school was closed recently due to flooding and cafes, bars and taxi drivers around the capital are losing business due to Thames Water’s botches. But there is no concrete plan to fix our broken water system because Thames Water has run out of cash and can’t find anyone to invest any.
So instead of fixing pipes and upgrading treatment works and reservoirs Thames Water continues to negotiate with regulator Ofwat to slacken safety and environment requirements in order to enhance profitability and attract investors. In August 2025 Ofwat agreed to let them defer payment of a record £122.7 million in fines for polluting until 31 March 2030 and now, shockingly, Thames Water’s creditors are asking for permission to pollute at the levels that incurred those fines in the first place until 2040. The deal was meant to be closed at the end of 2025, but talks are still dragging on. In spite of thousands of appeals from Thames customers to act, only 24 MPs have bothered to sign an open letter calling on Ofwat to say NO to 15 more years of pollution and only a handful of councils have followed constituents demands that they take action to protect their residents’ interests.
Still our Secretary of State and the rest of the cabinet can’t see that it is long past time to put Thames Water into Special Administration! The public is sick of broken promises and we are no longer prepared to prop up failing water companies. We want Thames Water back in public hands as an asset with a revenue stream that can be used to benefit households and the environment and we want an end to this sh*t!
P.S. If you are feeling disempowered and frustrated about Thames Water’s transgressions here are some ideas from Campaign Group We Own it
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