Contribution
It is a pleasure to see you in the Chair, Ms Lewell. I thank the hon. Member for Sutton and Cheam (Luke Taylor) for securing the debate and for not supporting Thames Water; I am very pleased to hear that.
I do not think anyone has been deluded into thinking that Thames Water is doing a good job—certainly not me or my constituents. Since I was elected to this House, hardly a year has passed without another major water infrastructure issue that leaves hundreds of my constituents without water for days on end. That is not to mention the years that I have lived in my constituency and been a victim of Thames Water’s extremely shoddy service. Apart from three years in Yorkshire, I have had to endure Thames Water for the entirety of my life, and it has shown very little concern for the impact that it has.
In 2023, a burst water pipe on Brixton Hill left residents without water for three days. Last July, on one of the hottest days of the year, residents of Clarence Avenue had their water shut off without any prior notice. As recently as December, faulty valve pumps in Brixton left homes without water for more than four days. Those are just the most recent incidents—as I said, there have been a number of them since I was elected.
The residents of Clapham and Brixton Hill are not the only ones who will have experienced those disruptions in service, so Members can imagine my constituents’ outrage when, in the wake of poor service and increased bills, they see Thames Water’s shareholders and directors receive millions of pounds in dividends. In October 2023, Thames Water made interim dividend payments totalling £37.5 million to its holding company, Thames Water Utilities Holdings Ltd, while the pipes were literally rotting under our feet. In March 2024, the company made further dividend payments amounting to £158.3 million, from which shareholders received non-cash benefits, all while the quality of water has continued to decline every single year.
Thames Water chairman Sir Adrian Montague was accused of a conflict of interest over the £37 million in dividend payments that were made to shareholders in February 2025. Under his tenure, Thames Water paid £195.8 million in dividends, breaching Ofwat rules. Ofwat fined it just £18 million, but Thames Water paid zero pounds of that £18 million fine. I agree with the hon. Member for Sutton and Cheam that Ofwat is also unfit for purpose.
Others may have a better understanding of how such things work, but I do not understand how a company that is in debt and failing, and that has damaged infrastructure, has the money to pay dividends to its shareholders. While my constituents’ taps run dry, the fat cats of Thames Water are literally turning theirs on—but not to drink the water of course, because they know better.
The cherry on the sewage-filled cake? On Tuesday, my constituents and millions of Thames Water customers woke up to what would have been the world’s worst April fool’s day joke—the grim reality of a 31% bill increase. One constituent wrote to me because they are experiencing a 45.8% increase in their monthly bill, from £36.55 to £53.30 a month. The service will remain shoddy, but the price that customers are made to pay will rise. Thames Water is rinsing my constituents, pouring sewage into our waterways and siphoning off money to shareholders, and hiking up bills to pay for it.
It is fair to say that Thames Water’s management are comparable with what the company is dumping in the Thames—crap. They are just crap. They are running the company’s finances into the ground and relying on the Government to bail them out, all the while leaving my constituents in the vulnerable position of having no running water at times. If they are relying on the Government to bail them out, we taxpayers are literally paying them twice. Clearly, they cannot be trusted to operate such a vital service legitimately, and they certainly should not be allowed to pocket thousands of pounds in the process.
I do believe that the Government should be supporting Thames Water—supporting it back into public ownership. That is the only support that they should give it. Rather than a US private equity firm being allowed to take it over, it should be taken over by the Government and made accountable to its service users, the British public. Those who are against nationalisation on an ideological basis will say that competition is needed to ensure innovation and the best service, but there is no competition for Thames Water. Which other water company can my constituents switch to when the service is poor?
It makes no sense to me that a new private company should be allowed to take over and reap the profits with little incentive to provide a better service. My constituents deserve a better service, and the continued private ownership of Thames Water will not bring that. Public ownership will not solve every single issue with Thames Water, but it will certainly solve more than allowing an American company to take it over and profit off the backs of my constituents.