“Anxious and increasingly frustrated” Ofwat staff demand clarity on reform plans

(by Karma Loveday)

Exactly one year on from the publication of the Independent Water Commission report which recommended the formation of a new super regulator, Public and Commercial Services (PCS)  trade union members at Ofwat wrote to new environment secretary Dame Angela Eagle calling for urgent clarity over their future. The letter stated: “We are not opposing reform. We are asking for workforce matters relating to reform to be transparent, credible, fair and deliverable.”

The signatories, more than 80% of PCS members working at the regulator, reported entering a trade dispute with Ofwat in December 2025 over matters including the lack of suitable assurances around terms and conditions, job security and wider working conditions in the context of the transition to a new regulator.

Seven months on, no Transition Plan has materialised and “We remain deeply concerned that we still do not have sufficient clarity, reassurance or engagement for the workforce expected to deliver these reforms. Our members are anxious and increasingly frustrated. Staff have continued to act professionally and deliver important work despite prolonged uncertainty. But professionalism should not be mistaken for consent, confidence or unlimited resilience.”

The letter pointed out: “This prolonged uncertainty is not neutral. It actively undermines morale, damages retention and weakens organisational resilience. The loss of experienced staff during transition would directly undermine the delivery capability on which these reforms depend.”

Beyond this core point, PCS members brought the following to Eagle’s attention: 

• Workforce considerations are absent from the reform narrative – “The reform discussion continues to focus heavily on structures, legislation, policy design, price reviews, investor confidence and delivery mechanisms. But the staff who will be charged with actually implementing the changes are largely invisible. Where the workforce is referenced at all in such discussions, it is indirect and through language about "capacity”, “resource” or “organisational change” rather than recognising staff as professionals with agency, concerns and legitimate interests. One year on from the decision to abolish Ofwat, there is no workforce strategy; no coherent transition plan for staff; no consistent recognition of morale, retention or wellbeing; and no acknowledgement of the risks posed by prolonged uncertainty.” 

• Lack of clarity on the future employment framework  – “We still have no decision on whether the proposed new regulator will be part of the civil service. This uncertainty has material implications for pay, progression and reward, pensions, job security.”

• Absence of meaningful trade union engagement – The letter acknowledged Defra has established a trade union engagement forum. “However, it is clear that workforce decisions – such as around the future model for corporate capabilities – are still being taken in advance of trade union consultation. Rather than merely feeding back on options for implementing decisions already taken, the forum should initially focus on agreeing shared workforce principles for the transition process that will shape all subsidiary decision points.” 

The signatories called for: 

• “A firm commitment to trade union consultation on all points. 

• A guarantee of no compulsory redundancies. 

• Remaining within the Civil Service pension scheme, compensation scheme, and retaining all rights conferred by civil service status. 

• Any role-matching exercise to be fair, transparent, and flexible around the ability of staff to learn new skills and develop expertise in new roles. 

• Support for staff who do not wish to transition into the new regulator, including support to transition to roles in other parts of the civil service, and clarity on the arrangements around any voluntary exit scheme.

• Fair arrangements around any re-grading exercise, taking into account not only staff members' current salary level but their levels of expertise and responsibility. 

• Protection and support for staff in precarious situations, including but not limited to: shorter serving staff, staff on early years schemes, staff on employment-linked visas. 

• Protection of our rights to home working, including but not limited to staff unable to attend the office frequently. 

• Continuation of all flexible working arrangements agreed between employer and employees, carers passports, etc. 

• Full support for staff with disabilities and other needs, including carrying over of reasonable adjustments, inclusive communications on transition arrangements, support for neurodivergent staff during change process, etc. 

• Protection of annual leave, privilege leave, and working hours. 

• Commitment to high quality and sufficiently sized office presence (across the English and Welsh regulators) in London, Birmingham and Cardiff, ruling out any compulsory changes to work location.”

PCS general secretary Fran Heathcote commented: “Our members have waited long enough for certainty about their future and shouldn’t have to resort to writing open letters to ministers. The Government must now provide the clarity and certainty needed to protect staff and ensure a smooth transition, and to give PCS members the assurances they deserve on job security, pay and conditions, as well as a genuine commitment to involving staff in shaping the new regulator.”