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Andy Burnham is facing growing pressure to swiftly nationalise Thames Water when he takes office on Monday.
The Prime Minister-in-waiting has spoken of wanting to see “greater public control” of water and energy companies and suggested he favoured direct public ownership of debt-laden Thames Water.
Ealing Central and Acton Labour MP Rupa Huq urged Mr Burnham to press head with this move after more supply problems for homes in London.
She posted on X on Saturday: “Hey @thameswater last week it was W3, W4 and W12 residents up the spout.
“Today you are punishing W5, W13 and W7 and leaving us with no running water
“You’re a disgrace and the sooner @andyburnham nationalises you the better.”
However, nationalising scandal-hit Thames Water could cost the taxpayer billions of pounds.
The quandary highlights the series of challenges facing Mr Burnham of turning his highly ambitious rhetoric and pledges, which have delighted Labour MPs and party activists, into reality.
Labour Deputy Leader Lucy Powell, MP for Manchester Central and a close ally of Mr Burnham, stopped short of pledging that Thames Water would be nationalised.
Asked directly on Sky News’ Sunday Morning with Trevor Phillips if a Burnham Government would nationalise Thames Water, she said: “Well, look, let's see.
“This has been an ongoing issue and concern in Government.
“The Government has powers to bring a distressed water company under special measures, and let's see if the Government needs to, want to use those powers.”
Labour Deputy Leader Lucy Powell hugs Andy Burnham after he is confirmed as the new leader of the Labour Party at a special conference held at the Trades Union Congress, in central LondonPAMs Powell added: “The privatisation of water hasn't worked. It's not created competition.”
She stressed bills had gone “up and up”, water companies had raked in profits, and the taxpayer now could be left to pick up the bill for failure.
In a message to households affected by no water or low pressure problems in W5, W7 and W13, the Mountfield Road area, Ealing, west London, Thames Water said on Sunday morning: “We’re pleased to let you know that the repair to the damaged water main has been completed and your water supply has been fully restored.
“We're sorry for the disruption this has caused and would like to thank you for your patience as we fixed things.”
More homes in London have been affected by no water supply or low pressurePAThames Water, Britain’s biggest water company, has around 16 million customers across London and the South East.
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Bosses at the firm have called for urgent clarity from Mr Burnham over his plans for the sector as they insisted the stricken utility could run out of cash within months unless a funding deal is struck.
There are reports that the company could be put into a special administration regime (SAR) to keep supplies flowing while a buyer is sought.
Amid the SAR threat, Thames Water creditors say they are willing to discuss greater 'public control' of the company.
Mike McTighe, a City turnaround veteran who has been working with 100 creditors, said: "We remain ready and willing to recapitalise Thames Water, return it to investment grade, and begin the long process of turning it around.
“We urgently need Government engagement to begin that process.”
But it is far from clear if ministers believe the latest proposals from creditors are viable.
Just days ago, in a move which will fuel customers’ anger, it emerged that Thames Water which has ramped up bills by around 40%, dished out more than £4 million in bonuses and boosted its chief executive pay to £1.2 million.
The company, which has been left on the brink of nationalisation as it struggles under a £20 billion debt pile, revealed in its annual report that bonuses of £4.09 million were paid to “key management personnel” as part of its so-called management retention plan.
It said the bonuses were made to board members and executives over the year to March 31, up from £2.8 million the previous year, and included performance-related and retention awards.
The report also showed chief executive Chris Weston’s total pay rose to £1.16 million in the year to March 31, up from £1.04 million in 2024-45 after he picked up a £99,000 retention payment deferred from a previous year.
His basic pay was also hiked by 14% from April 1 this year to £995,000.
Thames Water chief executive Chris Weston says the group has funding until OctoberPA ArchiveEnvironment Secretary Emma Reynolds said: “It’s outrageous that one of the worst-performing water companies is handing out bonuses and inflation-busting pay rises to its executives.
“It flies in the face of basic fairness, and the British public are right to be furious.
“We’ve banned bonuses for polluting water bosses and will be taking action to prevent bonuses by any other name.”
Last year’s Water (Special Measures) Act allowed regulator Ofwat to ban performance-related bonuses for bosses at utilities failing customers and the environment as part of the Government’s wider response to cracking down on the ailing sector.
Mr Weston said his £99,000 retention bonus was awarded before the Water (Special Measures) Act came into effect in June last year and the group confirmed he did not receive a performance-related payout for 2025-26.
Thames Water met only 55% of its regulated targets in the year to March 31, up from 38% in 2024-25.
Customer complaints over billing doubled year on year following tariff hikes, with overall complaints, including those over its operations, up 77%.