Water sector reform launched, but who will deliver it?

The Government has now published its long-awaited Water White Paper, described as the biggest overhaul of the water sector in a generation. The plans include creating a single water regulator, strengthening accountability measures, and the return of a Chief Engineer for the first time in more than 20 years.

There is much here that the Murray McIntosh team and I welcome. However, I also believe the reforms omit one fundamental component the sector urgently needs: a clear and coordinated skills strategy.

A welcome step toward more cohesive regulation

One of the most promising elements of the White Paper is the consolidation of regulatory processes. Today’s system is fragmented, with over 20 separate planning and regulatory routes that add bureaucracy, delay, and duplication. The move to centralise this into a single regime is certainly a step in the right direction.

For the sector, this would, in theory at least, result in a number of positives, from fewer barriers to delivery to clearer accountability thanks to improved visibility into who is responsible for what. On the face of it, the sector should also benefit from improved communication with stakeholders and the public.

This improvement in communication is not a minor benefit. Public understanding of water use, water stress, pollution and infrastructure pressures must be part of the long-term solution, particularly to improve the sector’s reputation, which is currently an additional hindrance to addressing ongoing skills shortages.

The Chief Engineer’s return is long overdue

Under the reforms, a Chief Engineer will sit inside the new regulator for the first time in two decades. Their mandate will include hands-on inspection and engineering-led oversight, ending the era of water companies ‘marking their own homework’ when it comes to infrastructure performance.

To me, this is a significant cultural shift.

For more than twenty years, the sector has largely been shaped by commercial, monetised decision-making rather than engineering-first thinking. Re-prioritising engineering rigour is essential if we are to address structural issues such as crumbling pipes, asset failures, and inconsistent service reliability.

But where is the skills strategy?

Despite the scale of reform, I am struck by how little emphasis the White Paper places on the skills required to deliver it. The document rightly focuses on tougher oversight, a single regulator and the return of a Chief Engineer, but it is largely silent on how we build, attract and retain the workforce that will make any of this real.

In parallel, our own data shows the situation is becoming more acute, not less. In fact, in our 2025 Water Industry Labour Report, almost half of engineers (49%) cited skills and recruitment as the sector’s biggest challenge, nearly double the figure we recorded in the previous year. Two-thirds (66%) of engineers tell us they are actively looking to move into other markets, notably oil & gas, nuclear and renewables, and 23% expect to retire within five years. That’s a perfect storm: rising demand, accelerating exits, and a shrinking pool of experienced practitioners just as AMP8 belatedly gets going.

Industry bodies and frameworks are working hard to define a baseline for how many people, with which skills, where, and by when. But few can quantify it with confidence, and without that clarity, we will struggle to mobilise at the speed the reforms imply. That’s not just my view; senior leaders contributing to our report describe the workforce as “the critical issue” and warn that the sector must tell a more compelling purpose-led story, one that is underpinned by topics including clean water, climate resilience and social value, if we expect to win the war for talent. This is echoed internationally: utilities worldwide are wrestling with the same problem and being urged to rethink how they market themselves to attract the best people.

Innovation: A missed opportunity

It’s also important to note that while the reforms cover essential improvements, such as smart meters, wastewater upgrades, and pre-pipe pollution measures, these are not new. They were already being discussed in previous AMP cycles. Given the scale of the challenges we face, this feels like a missed opportunity to push innovation harder.

Part of the reason may be timing: the reforms have been years in the making and have potentially lost political momentum. Wider global events have likely diverted attention, and the result is a strategy that is constructive, but not as bold as many of us hoped.

Will we see an AMP10?

One of the most significant questions arising from this reform package is the future of the AMP cycle itself.

AMP8, scheduled to begin in April 2025, is only now gaining traction, almost a year behind schedule. That delay is deeply concerning from both a project delivery and workforce planning perspective. If the five-year AMP framework is replaced entirely, it could be transformative, but the current uncertainty is creating real challenges for investment and resourcing pipelines.

It’s both frightening and exciting in equal measure.

Where we go from here

The Government’s reforms deliver essential structural change. But the infrastructure of the future will not be built by policy alone; it will be built by people. Engineering talent, digital capability, net-zero literacy, operational expertise, and customer and community engagement skills are just a few of the critical skills that will be needed. These will determine whether the sector can deliver on the promises of the White Paper.

Murray McIntosh will continue to champion this perspective through the emerging DEFRA skills council, through our continued workforce analysis, and through our partnerships across the sector.

Reform gives us a blueprint. Skills will determine whether we can build from it.