Only 1% of the UK public say water companies should put shareholders first, new YouGov poll finds

New polling supports the case for public interest water reform

As Andy Burnham is appointed Prime Minister today, following his recent calls for “greater public control” of water companies, new polling commissioned by River Action and conducted by YouGov reveals overwhelming public support for a fundamental shift away from the current shareholder-first model of England’s privatised water industry. 

With Thames Water facing severe financial distress and continuing to pollute rivers, one of the Prime Minister’s first major tests will be whether he places the company into Special Administration, using the opportunity to restructure it to operate in the public interest and for environmental benefit, rather than prioritising financial returns. 

Polling reveals voters reject the shareholder-first model

The nationally representative poll found that 77% of the public believe water companies should act entirely or largely in the public interest, while just 1% believe they should prioritise private interests.

The findings suggest the public has moved beyond frustration over sewage pollution, rising bills and failing infrastructure to questioning who water companies exist to serve. With the new Prime Minister placing greater public control of the sector firmly on the political agenda, the polling indicates there is now a clear public appetite to move away from a system which is seen to prioritise investors.

The survey also found that only 1% of the UK public believe water company profits should be returned to investors, with almost nine in ten instead saying profits should be reinvested in infrastructure (44%), used to reduce bills (28%) or improve environmental performance (17%).

A breakdown of the poll results

When asked who water companies should be accountable to:

• 47% said customers
• 15% said environmental regulators
• 15% said government
• 11% said local communities
• Only 1% said investors or shareholders.

Asked how water company profits should be used:

• 44% said investing in water infrastructure
• 28% said reducing customer bills
• 17% said improving environmental performance
• Just 1% supported returning profits to investors.

Among the 77% of respondents who believe water companies should operate primarily in the public interest, there was strong backing for structural reforms, with respondents believing the following would be most effective in ensuring water companies work in the public interest

• 55% for legally requiring profits to be reinvested into infrastructure.
• 39% for banning executive bonuses.
• 37% for greater transparency.
• 33% for stronger independent regulation.

James Wallace, CEO of River Action: 

“This polling reveals a remarkable public consensus. The debate has moved well beyond sewage pollution and poor performance. People are now questioning the very purpose of privatised water companies.

Just one per cent of the public believe water companies should put private interests ahead of the public interest. That is an extraordinary finding and a clear rejection of the investor-first model that has dominated the sector for more than three decades.

Andy Burnham’s first major test will be Thames Water, the UK’s largest serial river polluter that is also under severe financial stress. By placing the company into a form of temporary public control called the Special Administration Regime, the Government would have the opportunity to restructure it so that it operates for the benefit of customers, rivers and the wider public, rather than prioritising financial interests.

Taking decisive action on Thames Water would send a powerful signal that the Prime Minister is serious about reforming the water sector. The public has made its expectations crystal clear: they want water companies to serve the public interest, reinvest in infrastructure and restore our rivers, not continue with pollution-for-profit business as usual.”

Poll Highlights

• 77% say water companies should act entirely or largely in the public interest.
• Only 1% believe water companies should prioritise private interests.
• 47% say water companies should be accountable primarily to customers.
• Only 1% say investors or shareholders should come first.
• 44% say profits should be invested in improving water infrastructure.
• 28% say profits should reduce customer bills.
• 17% say profits should improve environmental performance.

For the poll results in full, please click here.

Learn more about our campaign for water reform.