The £104Bn investment comes from customer bills. Letter to Secretary of State to clarify

We wrote to the Secretary of State, we are still waiting for a reply (2 months and counting…)

Emma Reynolds, Secretary of State

Seacole Building

2 Marsham Street London SW1P 4DF

11th December 2025.

Dear Secretary of State

 We note that on the 10th December you claim to "have secured £104bn in private sector investment – this represents one of the largest infrastructure programmes in the UK economy".  https://www.cityam.com/environment-secretary-i-will-fix-the-water-sector/

 The government has secured £104bn spending, but ultimately the funds will come from customer bills.

 What you mean is that the government has secured £104bn spending by putting up bills which will increase on average by 36% by 2030.

 Here are the two links setting out the evidence for your information:

1. 'Ofwat says the allowed bill increases will be used to fund a £104 billion investment in the system' https://channel4.com/news/factcheck/factcheck-water-bills-in-england-and-wales-to-hit-record-high. [Channel4 Fact Check ]

2. Previously Ofwat told the City that "PR24 set prices for 2025 to 2030 based on an allowed expenditure of £104bn of which £90.9bn is allowed revenue (i.e.from the increase in consumer bills) and the balance is intended to come from shareholder equity".  https://www.ofwat.gov.uk/wp-content/uploads/2024/12/PR24-final-determinations-City-briefing.pdf [PR24 final determinations City briefing 19 December 2024]

We ask that you are clear in your communications. While the £104bn funding may initially come from the private sector, in the end it is the customer that funds the water sector in its entirety. 

Kind regards

on behalf of

Prof Becky Malby, Dr Kate Bayliss, Prof Frances Cleaver,

The People's Commission on the Water Sector