Yorkshire Water initiated the first hosepipe ban of 2025 across Yorkshire starting July 11, affecting over five million people due to the driest and warmest spring on record with only 15 centimeters of rainfall between February and June. Following this, South East Water announced a hosepipe ban effective July 18 in Kent and Sussex, with Thames Water becoming the latest company to impose restrictions across four counties amid soaring water demand and ongoing heatwaves. Thames Water, which supplies about a quarter of the UK population, reported a £1.65 billion annual pre-tax loss, a steep decline from a £157 million profit the previous year, and its debt increased to £16.8 billion. The company’s chief executive warned that a turnaround could take at least a decade, with the utility described as "extremely stressed" and facing questions from MPs about its future, including the possibility of temporary nationalization. Concurrently, drought has been officially declared in the West and East Midlands, marking the driest start to the year since 1976, with some water levels at their lowest in 50 years. Southern Water also introduced a hosepipe ban affecting around one million people, expanding water restrictions nationwide to more than eight million residents. In response to the crisis, the UK government announced a comprehensive reform of the water sector, including abolishing the current regulator Ofwat and replacing it with a single, more powerful body. The Independent Water Commission’s 465-page report, which includes 88 recommendations, criticized the existing regulatory framework for failing to prevent pollution, leaks, and rising bills. Environment Secretary Steve Reed described the reform as the "biggest overhaul of water regulation in a generation," aiming to reduce sewage pollution by 50% over five years. Despite these measures, critics argue the reforms do not address fundamental issues such as privatization and call for more radical changes to restore public confidence in the water industry.