Water rip-off: Burnham’s chance to clean up the sewage scandal

The water industry is in crisis. Every day, water companies let billions of litres leak from faulty pipes – but they’re imposing hosepipe bans on 23 million people. Homes and businesses have been hit with disruptions, even closing bars, restaurants and toilets at Gatwick airport. And yet water bosses have raised their own pay packets by 1.5% – to £25.3m a year.

In his first speech as Labour leader, Andy Burnham argued that Britain took a wrong turn in the 1980s, when privatisation of our water sector drove the industry into a dead end. Since 1989, private water companies have handed out more than £85bn in dividends and loaded up on more than £72bn in debt. But they haven’t built a major reservoir since 1992, they’ve failed to fix leaks and they’ve unleashed a tide of sewage into lakes, rivers and beaches across the country.

And the crisis is deepening. Since 2021, the 10 largest private water companies in the UK have hiked up their bills by an average of 56% while spilling sewage more than 1.8 million times. This dangerous cocktail of raw sewage, rainfall runoff, industrial chemicals, pharmaceuticals, microplastics and heavy metals isn’t just a threat to local wildlife. Bacteria such as E coli and intestinal enterococci can cause serious illness for swimmers and other water users. Last month, a boat club on the Thames discovered that the river water contained levels of E coli that were 65 times the legal limit. And the campaign group Surfers Against Sewage reports that, so far this summer, sewage has been spilled on 65 beaches.

As millions struggle with the cost of living, rising water bills are hitting families hard – with 1.8 million people living in water poverty. Tens of thousands have complained to water companies about their bills, but they can’t take their business elsewhere – each water company holds an absolute monopoly in their region. And official watchdogs who are supposed to protect our interests have been unable or unwilling to hold these companies to account. Over the last two years, campaigners have found that more than 80% of sewage spills have occurred during “normal” weather periods – which makes them illegal. But, according to Channel 4, the Environment Agency hasn’t completed a single prosecution of a water company for any serious pollution incident over the last five years.

Burnham has arrived in Downing Street promising to fix this scandal with “greater public control”, arguing that the “essentials of life” should be “run primarily for the public interest, not for private interest”. But he’s facing a determined campaign from lobbyists and private lenders who want to keep the gravy train running. This month, investors who want ownership of Thames Water have threatened to challenge any attempt to put the company into special administration and tried to fend off the prospect by offering the government a “golden share”.

For James Douglas, head of legal at Good Law Project, the new government needs a new approach.

“For 30 years, we’ve been paying the price of failure,” Douglas said. “Burnham must put the public first and fix this broken industry, so that companies stop spilling sewage and ripping off customers.”

Water bills shouldn’t cost us the earth – or our rivers, lakes and beaches. These companies are robbing us of our right to enjoy nature and making us pay for the privilege – while those responsible for stopping them are asleep at the wheel.

There’s power in numbers. Together, the 10 largest water companies have 54 million customers. Armed with the facts about this failing industry, we can make sure Burnham keeps his word – providing clean water and safe swimming at a price we can all afford.