Water supply failure now rated catastrophic risk in the UK

The Cabinet Office has raised water infrastructure failure to its catastrophic risk level, MPs on the Committee of Public Accounts said.

The finding appeared in the annual report of Geoffrey Clifton-Brown, chair of the Committee of Public Accounts, published on Wednesday (14 October).

The 2026 National Risk Register places the failure of water infrastructure or loss of drinking water at impact level 5, its highest rating.

Large parts of the country experienced severe drought over the summer, and 27 million people are now subject to water restrictions, the report said.

The register also lists cyber-attacks on water infrastructure as a risk, and the committee urged government to give the threat serious consideration.

“Water is the essence of life, but as I highlighted in my first Annual Report, failing water infrastructure is contributing to the impending risk of water shortages in the UK,” said Clifton-Brown.

The committee’s July 2025 report on water sector regulation found that water companies had underinvested in both the resilience of supply and wastewater treatment.

Government announced in January 2026 that Ofwat and the Drinking Water Inspectorate would merge with the water functions of the Environment Agency and Natural England.

This will create a single integrated regulator for the water sector.

The committee said water companies were using a variety of methods to get around Ofwat’s ban on bonuses for poorly performing executives. It called on the new regulator to close these loopholes.

MPs also said it remained unclear how the reforms in the government’s water white paper would deliver value for money for customers.

“It remains to be seen whether government’s reforms have enough teeth to sufficiently improve the sector, and the Committee will continue to scrutinise developments in this area,” said Clifton-Brown.

Help with bills

A separate committee report on water, energy and broadband regulation found that confusing eligibility rules for social tariffs may stop customers getting help with their water bills.

Awareness of these tariffs remains low among both water and broadband customers, the committee said.

Ofwat estimates that as many as 52% of households could qualify for the Priority Services Register. Utility companies run this free service for customers with additional communication, access or safety needs.

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