Navigating the New UK Water Regulator: What It Means for the UK Water Workforce

The publication of the Independent Water Commission’s report—widely referred to as the Cunliffe Report—marks a defining moment for the UK water industry and the role of the UK water regulator moving forward. Released on 21 July 2025 and chaired by Sir Jon Cunliffe, the 465-page document has been described as the most significant review of the sector since privatisation. Its findings are unambiguous: the current system is underperforming, undermined by underinvestment, pollution incidents, rising consumer costs, and fragmented regulatory oversight.

Central to its 88 recommendations for England is the proposal to abolish Ofwat, the Drinking Water Inspectorate (DWI), and the water-environment functions of the Environment Agency (EA) and Natural England, replacing them with a single, integrated regulator and a parallel model to be considered for Wales. This new body would unite responsibility for economic oversight, drinking water standards, environmental protection, and infrastructure resilience to restore accountability, improve clarity, and rebuild public trust.

Why Consolidation is Necessary

For more than three decades, water regulation in England has been divided between three regulators. Ofwat has been responsible for economic regulation—monitoring pricing, investment, and service performance. The Environment Agency has overseen river health, abstraction licensing, and storm overflows. The Drinking Water Inspectorate has ensured that drinking water quality complies with health-based standards.

Individually, these regulators have delivered important outcomes. Collectively, however, the Cunliffe Report concludes that this separation has created inefficiencies, duplication, and at times direct conflict. Ofwat’s pressure to keep bills affordable has, on occasions, limited the ability of water companies to make the investments required to meet environmental obligations. Meanwhile, infrastructure shortfalls flagged by the EA could undermine compliance with water quality standards monitored by the DWI.

The result has been inconsistent enforcement, slower responses to raw water and river pollution events, and a damaging perception that no one body holds ultimate responsibility. The integration of functions into a single regulator would, according to the Commission, address these challenges by providing a clear point of authority, reducing regulatory overlap, and ensuring that long-term strategic planning aligns with the forthcoming 25-Year National Water Strategy.

Implications for the Workforce

The proposed changes will not only restructure regulatory institutions but also have a direct impact on the water industry workforce. Water professionals must adapt, upskill, and reorient themselves toward new expectations:

Regulatory Knowledge

First and foremost, an understanding of the new regulatory framework will be critical. Compliance responsibilities will be consolidated, and all functions—from engineering and operations to customer service—will need to align with the scope of the integrated regulator. This shift will require staff at all levels to be fully briefed on new structures, reporting mechanisms, and performance standards.

Digital Skills

Digital capability will be a second major area of focus. The Commission has emphasised the role of real-time data, smart metering, and digital reporting as essential tools for accountability. Professionals across the sector will therefore need to be proficient in data analysis, monitoring technologies, and digital communication platforms adopting new ways of working.

Systems Thinking

The new framework will also encourage systems thinking. The planned establishment of regional water authorities aligned with river basins will require collaboration across multiple sectors, including housing, agriculture, and infrastructure. Staff will need to approach their work with an appreciation of interdependencies, moving beyond narrow specialisms to contribute to integrated water resource management.

Social Responsibility

Finally, there will be a stronger emphasis on social responsibility. The introduction of a national social tariff, alongside the strengthening of the water ombudsman, reflects a renewed commitment to protecting vulnerable customers. Those in customer-facing or community-focused roles will require enhanced training in communication, inclusivity, and fairness to meet these new expectations.

Training and Professional Development Opportunities

While the transition presents challenges, it also creates significant opportunities for both new entrants and experienced professionals. Emerging roles are expected in compliance management, digital systems operation, environmental monitoring, and regional water planning. At the same time, seasoned professionals will benefit from upskilling in areas such as regulatory strategy, digital analytics, and stakeholder engagement.

At CV Water Consultancy, we are supporting this transition by equipping professionals with the skills and knowledge required to thrive in the restructured landscape. Our training programmes have been carefully designed to align with both current and emerging industry needs.

Our Introduction to the UK Water Industry course provides a structured overview of the sector, covering regulation and regulatory governance, financial and investment cycles, the water cycle and its treatment and distribution, wastewater and bio-resources, and the growing challenges of emerging pollutants. The course also explores the sector’s journey towards digitalisation and sustainability, ensuring that professionals are prepared for future developments. The course is delivered on behalf of the Institute of Water and endorsed by CABWI awarding body.

We also deliver the National Water Hygiene Scheme (Blue Card) through e-learning on behalf of Energy and Utility Skills. This essential certification addresses water hygiene, contamination risks, and prevention strategies, ensuring that frontline staff maintain the highest standards when working in the delivery of clean water.

For those engaged in work involving drinking water products and materials, such as project designers, managers and operations, our four-hour Products for Drinking Water course on behalf of Energy and Utility Skills provides clarity on the regulations that apply, the consequences of non-compliance, and the importance of accurate record-keeping for audit purposes. This focused training ensures compliance and minimises risk in a highly regulated area of the industry.

Preparing for the Future

The Cunliffe Report sets out a clear vision for the sector: simplified regulation, renewed trust, and infrastructure capable of meeting future challenges. Realising this vision will depend not only on structural reform but also on the preparedness of the industry workforce.

This is a time for proactive engagement. By investing in training, developing digital skills, and adopting a systems-based approach to problem-solving, professionals can ensure they are ready to deliver against the expectations of the new regulatory environment.

The water industry in the UK is entering a new era. By anticipating change and equipping the workforce with the right skills today, we can ensure that tomorrow’s sector is stronger, more transparent, and more responsive to the needs of both the environment and society.