Water Companies: Capital Investment
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to her Department’s press release entitled Government unveils biggest overhaul to water in a generation, published on 19 January 2026, how her Department plans to monitor and report progress on private sector investment over the next five years.
Answered by Emma Hardy
Before 2029, the water industry will deliver a water infrastructure upgrade programme worth £104 billion. Upgrades will include 10 million new smart meters, progressing 9 new reservoirs, and delivering 3,000 storm overflow projects. This will require the highest level of private sector investment in the water sector since privatisation. The investment programme will drive economic growth, create jobs, and enable thousands of new homes.
Ofwat, the independent economic regulator, monitors and reports on water company spending and financing through its annual performance report and its monitoring and financial resilience report. These documents are publicly available.
The Government has set out its new vision for water through a White Paper published on 20 January 2026. The White Paper sets out once in a generation reforms that will transform the water system for good, with a renewed focus on securing a fair deal for customers, investors, and the environment, to rebuild trust and secure a water system that works for everyone.
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