Independent Water Commission Report 2025: Key Recommendations on Drainage, SuDS and Schedule 3

Among the report’s most significant proposals is a fundamental restructuring of water regulation in England, recommending the abolition of Ofwat, something that the government has since confirmed. A new, consolidated authority would be created to merge the responsibilities of the Drinking Water Inspectorate with the water environment functions currently held by the Environment Agency and Natural England. A distinct model is proposed for Wales, where new economic regulatory powers would be incorporated into the existing framework of Natural Resources Wales.

“We therefore recommend bringing together Ofwat, the Drinking Water Inspectorate, and the water environment functions of the Environment Agency and Natural England into a new organisation in England. In Wales, we propose embedding new economic regulatory responsibilities within Natural Resources Wales.”

The Environment Agency will continue to control operational flood management

Although the Commission recommends transferring the Environment Agency’s water environment functions to the new regulator, its operational flood responsibilities remain unchanged. The report makes it clear that flood risk management sits outside its terms of reference, aside from where it overlaps with strategic planning for water systems.

“Operational flood functions would remain in the EA. Flooding is outside of the Commission’s Terms of Reference, other than where it currently interacts with strategic planning for the water system. The Commission has therefore not assessed how flooding functions are organised. The government should bear in mind the interaction between floods and other areas of water policy, as well as the substantial operational element of flooding work when considering how best to implement the Commission’s recommendations. Chapter 2 on systems planning contains some further consideration about aligning water and flooding.“

Natural Resources Wales (NRW) will continue to retain all current flood risk functions and environmental regulatory duties.

The report highlights the benefit of SuDS, stating that a home with sustainable drainage has as little as 13% of rainwater enter the sewage system compared to 100% from a home without SuDS. 

The report specifically recommends that Sustainable Drainage Systems (SuDS) should be mandatory on new developments in England. It goes further to say that consideration should be given to retrofitting SuDs in existing properties and in public spaces. The report recommends this be achieved by commencing Schedule 3 to the Flood and Water Management Act 2010. This further builds upon the recommendations from the recent National Standard for Sustainable Drainage Systems (SuDS) 2025 and EA2030. 

“SuDS in new developments in England should be a mandatory requirement and should be built and maintained to a consistent standard. The UK Government could achieve this through commencing Schedule 3 to the Flood and Water Management Act 2010, noting this has already happened in Wales, or by amending existing planning policy. This would build on the government’s recently announced national standards for SuDS. As well as future developments, consideration should be given to retrofitting SuDs in existing properties (commercial and residential) and more widely (in public spaces).” 

How would Schedule 3 affect future development?

Schedule 3 of the Flood and Water Management Act 2010 will make sustainable drainage systems (SuDS) mandatory for most new developments in England. It introduces a requirement for developers to obtain approval from a SuDS Approving Body (SAB) before construction begins, ensuring drainage designs meet national standards for managing surface water and reducing flood risk.

At present, the implementation of SuDS in England varies widely between local authorities, with each authority applying its own policies, guidance, and requirements. This patchwork approach often leads to inconsistency, uncertainty, and delays for developers, who must navigate differing expectations depending on the location of a site. Schedule 3 of the Flood and Water Management Act will address this by introducing a single set of national standards

Schedule 3 of the Flood and Water Management Act 2010 requires drainage approval from a SuDS Approval Body (SAB) before construction work with drainage implications can begin. The SAB must assess whether proposed systems meet the mandatory standards.

The SAB would consult with:

• Sewerage undertakers whose public sewers are affected
  
• The Environment Agency, if water discharge into a watercourse is involved
  
• The relevant highway authority
  
• The Canal & River Trust, where drainage impacts managed waterways
  
• Internal Drainage Boards (IDBs), where discharge enters ordinary watercourses within their districts
  

Some developments will be exempt, such as:

• Permitted development with a footprint of less than 100 square metres
  
• Works carried out by IDBs under their statutory responsibilities
  

This approach ensures that SAB approval is proportionate and does not place unnecessary burdens on smaller developers.

How SuDS Works in Wales

Wales has already implemented Schedule 3, making SuDS approval mandatory since January 2019. In Wales, all new developments of more than one property or over 100m² must have drainage systems approved by the local SAB before construction can begin. The SAB assesses whether the proposed SuDS meet national standards for managing surface water, water quality, biodiversity, and amenity. This system has created a consistent and transparent approach across the country, ensuring that new developments are better equipped to manage flood risk and deliver environmental benefits.

The challenge of ‘right to connect’ 

The report does address the legislative challenges that add pressures to the sewerage systems, one of which being the “right to connect”. In the UK, property owners have a legal right under the Water Industry Act 1991 to connect to public water mains and sewers, provided technical standards are met, notice is given, and any required charges are paid. 

The report recommends that the government consider further changes to the existing right to connect, ensuring developers take measures to mitigate the impact of their development on the sewer system before connection, further cementing the recommended importance of SuDS. 

“The government could also consider further legislative change to the existing ‘right to connect’ to ensure developers take measures to mitigate the impacts of their development on the sewerage network before connecting to the sewer system.”

Impact on future development

The government’s ambition to build 1.5 million homes could become more challenging under stricter drainage requirements and mandatory SuDS. The report recognises this tension but argues that regional planning bodies will ensure economic growth and water security work hand in hand.

“Single decision maker to ensure economic growth and water are mutually reinforcing, especially that tensions between housing and water do not reach a crisis point.”