What is the Cunliffe Review?
In October 2024, the UK Government and the Welsh Government commissioned the Cunliffe Review – an independent assessment of how the water system in England and Wales is run, regulated and held to account. It has been described as the most comprehensive review of the water sector since privatisation and is named after its chair, Sir John Cunliffe.
At first glance, the Cunliffe Review may look like another technical examination of a heavily regulated industry. In reality, it represents a pivotal moment for how essential public services are governed. The Cunliffe Review makes 88 recommendations aimed at reforming the system. The Government has already indicated support for several of the Cunliffe Review’s directions of travel and has committed to publishing a White Paper and introducing a Water Reform Bill. In the meantime, water companies and regulators are beginning to prepare for potentially significant change.
What did the Cunliffe Review say?
The Cunliffe Review examined why the water system has struggled to deliver clean rivers, resilient infrastructure and affordable bills at the same time. Its central conclusion was not that a single organisation or group had failed, but that the system as a whole is fragmented and poorly aligned.
Over decades, responsibility for water has been divided between multiple regulators, government departments and public bodies, each setting their own priorities. The result is a system that often demands everything at once (for example lower bills, cleaner rivers, net-zero emissions, drought resilience and rapid housing growth), without clearly deciding what should take precedence when those goals inevitably conflict.
While the Cunliffe Review contains many detailed proposals, its core message is simple- complex public services need clearer leadership, better coordination and more honest choices about trade-offs.
What will change in the water sector?
If the Cunliffe Review’s recommendations are implemented, several practical changes are likely to follow. Below are 5 key changes which may happen in water:
1. A single water regulator. Instead of four separate regulators (Ofwat, the Environment Agency, Natural England and the Drinking Water Inspectorate) with overlapping and sometimes conflicting responsibilities, water related regulatory functions would be brought together into one integrated regulator for England, with a separate regulator for Wales.
2. A more forward-looking approach to price regulation. Five-yearly price reviews would continue, but with a shift away from a heavily data-driven, desk-based process towards a more supervisory and forward-looking approach, focused on long term company resilience and investment planning.
3. Open, real-time monitoring of wastewater. Rather than relying primarily on samples taken by companies and reported to regulators, the Cunliffe Review recommends open monitoring, real-time monitoring of the wastewater system, with data made publicly available online to improve transparency and rebuild trust.
4. A new statutory Water Ombudsman. The Cunliffe Review proposes replacing the existing Consumer Council for Water with a statutory Water Ombudsman, providing stronger, more independent oversight of customer complaints and redress.
5. A long-term National Water Strategy. Finally, the Cunliffe Review recommends a government-produced, 25-year National Water Strategy for both England and Wales. This would be cross-sectoral and systems-focused, intended to align water policy with wider objectives such as environmental protection, climate adaptation and economic growth.
