Live Mains Round-Up: September 2026.
Five stories from the water sector this month: a Water Bill that lifts the cap on government shareholdings, Ofwat's £3.4bn draft allowances, a record year for Thames Water apprenticeships and two AMP8 contract awards.
Water Bill to remove cap on government shareholdings in water companies
A strengthened Water Bill will lift limits on government share ownership in England's major water and sewerage companies, the Prime Minister has announced.
Prime Minister Andy Burnham announced on 29 September 2026 that a strengthened Water Bill will remove the current limits on government ownership of shares in the major water and sewerage companies in England.
The limits are set out in the Water Act 1989. According to the Department for Environment, Food & Rural Affairs (Defra), they vary between 1% and 3% depending on the company and are below 3% in each case. The associated restriction on the government acquiring shares in those companies will also be removed. The change will apply in England.
Defra says removing the cap gives the Government flexibility to consider a wide range of possible future interventions, including on ownership models. The department also states that the long-term future of the sector relies on continued private sector investment and that removing the cap does not change this.
The Prime Minister also said mayors and strategic authorities have too little influence over water companies' priorities. New powers for local leaders will be developed as part of the Government's water sector reforms.
Further detail is due in the Government's 10-year plan for Britain, to be published later this year. The announcement does not give a date for the Bill's introduction to Parliament.
Source: Defra press release, 29 September 2026
Ofwat proposes £3.4bn in extra allowances through cost change process
Ofwat's draft decisions would give water companies £3.4bn more for asset health, growth, PFAS and major schemes. Final decisions are due in December.
Ofwat has published its 2026 cost change draft determinations. They propose £3.4 billion of additional expenditure allowances for 13 water companies across 2025-35, in 2022-23 prices.
Companies submitted £4.3 billion of claims. Ofwat excluded £752 million where evidence of need was insufficient or spending fell outside the scope of the process. It then applied a further £143 million reduction through its best option and efficiency challenges.
For 2025-30 the draft allowances include £1,247 million for asset health, £772 million for large gated schemes, £477 million for growth, £331 million for major projects development costs and £34 million for PFAS removal. Within asset health the largest sums are for gravity sewers (£499 million) and network storage (£480 million).
Ofwat proposes some in-period funding for five companies: Severn Trent Water, Southern Water, Thames Water, Wessex Water and South East Water. Any resulting bill impact would begin in April 2027. Ofwat's illustrative estimate is an average bill increase of £43 in 2027-28 for Southern Water and between £0 and £4 for the other four. Other allowed spending would be recovered from April 2030.
The consultation closed on 24 September 2026. Ofwat intends to publish final determinations in December 2026.
Source: Ofwat, Cost Change 2026 Draft Determinations
Thames Water apprenticeship scheme draws record 9,908 applications
Thames Water received 9,908 applications for 145 apprenticeships starting in May and September 2026, the highest number in the company's history.
Thames Water received 9,908 applications for 145 apprenticeship roles starting in May and September 2026, the highest number in the company's history. The September cohort started this month, following a first 2026 intake of repair and maintenance and warehouse apprentices in May.
Roles cover engineering, finance, data, communications, project management and repair and maintenance, from entry to degree level. Apprentices are guaranteed a role on completing their training. Applications opened during National Apprenticeship Week (9 to 15 February 2026).
The company reports a five-year apprenticeship completion rate of 82%, rising to 91% for Level 3 Engineering. It cites a national average of 65%.
Thames Water says the apprentices will support its investment of more than £20 billion over five years to fix leaks, reduce pollution and protect water quality.
Source: Thames Water press release, 22 September 2026
Costain appointed to £150m Thames Water wastewater upgrade programme
Costain will carry out around £150m of upgrades at 15 Thames Water wastewater treatment sites in the Thames Valley during AMP8.
Thames Water has awarded Costain around £150 million of upgrades to wastewater treatment assets at 15 sites across the Thames Valley. The work forms part of Thames Water's Wastewater Asset Assurance Programme and is due for completion during AMP8 (2025 to 2030).
The scope includes modernising inlet stations, improving the resilience of storm tanks and other repairs, modifications and upgrades to wastewater systems.
Costain will split delivery into East and West regions, each with a regional senior project manager. The eastern sites are Barkway, Brentwood, Long Reach, Little Hallingbury, North Weald and Standon. The western sites are Aldershot, Burghfield, Esher, Horley, Lightwater, Marlborough, Northleach, Waddesdon and Windsor.
Thames Water plans improvements at more than 250 sewer and sewage treatment sites across its region. Costain has previously upgraded Thames Water treatment assets at Markyate, Brickendon, Sandhurst and Selborne.
Source: Costain press release, 17 August 2026
Marshalls joins Severn Trent storm tank framework
Marshalls Civils & Drainage is one of four suppliers on a new £6m Severn Trent framework for precast concrete storm tanks under AMP8.
Marshalls Civils & Drainage has secured a place on a new £6 million Severn Trent Water framework to supply precast concrete storm tanks through the water company's AMP8 investment programme. Marshalls is one of four preferred partners on the framework.
The award followed a three-stage tender covering pre-qualification, detailed design development and a final site assessment. As part of the final stage Severn Trent representatives visited Marshalls' manufacturing site at Pollington.
Pollington will be the primary manufacturing site for the framework, supported by the company's Mells facility. Marshalls says the arrangement is intended to reduce transport distances. The company describes storm tanks as a new product type for the business.
Marshalls has also been appointed to Severn Trent's wider precast supply framework. It says it is now working with Severn Trent's design and sustainability teams on delivery.
Source: Marshalls, 5 August 2026
