On 26 December 2025, as Boxing Day swimmers took to open waters across England, the UK government set out the year’s actions on water quality. Environment Agency bathing water classifications published in November recorded 93% of designated sites meeting the required standards, an improvement on last year, according to Defra.
The centrepiece this year is the Water (Special Measures) Act, described by ministers as the toughest enforcement package in a decade. The Act creates criminal liability for water company leaders who conceal illegal sewage discharges and enables government to block unfair executive bonuses; Defra says more than £4 million in bonuses were stopped across six firms in 2025.
Spending by water companies has been ringfenced so customer funds are directed to repairing pipes, reducing sewage spills and improving water quality rather than dividends or incentive awards. The objective is to channel bills into outcomes that directly improve service and environmental performance.
Regulatory capacity has been increased. The Environment Agency can recover the costs of enforcement from polluters, expand its inspection activity and issue penalties more quickly, reducing the need to devote resources to lengthy investigations before action is taken. Government’s stated aim is faster sanctioning and a clearer deterrent effect.
Transparency requirements have been tightened. Real-time monitoring is being mandated for every emergency overflow so communities can see discharge activity in local waters. The move is intended to support public health information and provide regulators with live operational data for compliance checks.
Customer protections have been strengthened. Compensation has been doubled when basic water services fail, and processes have been simplified so vulnerable households can access bill support more easily, according to Defra. Ministers argue the measures align incentives with service reliability while upgrades proceed.
The programme is underpinned by more than £104 billion of private investment secured at the end of 2024 for delivery over the next five years. Government describes this as the largest upgrade programme since privatisation, intended to support jobs, enable new housing and cut pollution by accelerating capital works.
Bathing water rules are being reformed. Ministers intend to lift prescriptive limits on bathing seasons and on de‑designation processes, with the stated goal of better protecting public health. For local authorities and community groups, that signals a more flexible, potentially year‑round approach to monitoring and public information for bathers.
A Water White Paper will be published in the new year (2026) to set out long-term proposals for the sector. Earlier in 2025 the government announced plans to abolish Ofwat and replace what it calls a fragmented system with a single water regulator. Any structural change would require legislation and the details are expected in the White Paper.
For companies, this package means tighter personal accountability for senior leaders, greater scrutiny through real-time data and a stronger enforcement posture from the Environment Agency. For councils and residents, bathing water reforms point to more responsive public health information. For investors, ringfencing and the proposed single-regulator model aim to clarify expectations for capital programmes.
Water Minister Emma Hardy said the government will continue the reform programme into 2026 following progress in 2025 on enforcement, investment and data transparency. The government characterises the year as a reset intended to restore public confidence in England’s rivers, lakes and seas.