A landmark government review has declared England and Wales’ water industry “broken,” prompting plans to abolish Ofwat and merge its responsibilities with those of the Drinking Water Inspectorate, Environment Agency and Natural England into a powerful new regulator.

The reform will implement five immediate recommendations, including real‑time sewage spill reporting, regional water boards, and a legally backed ombudsman to empower consumers.

The overhaul, driven by Sir Jon Cunliffe’s report, aims to halve pollution and improve oversight by 2027, while Thames Water faces possible special administration under mounting debt and public discontent.