Financial targets must be linked to skills if water sector is to deliver real change

Proposals to introduce legally binding debt targets for water companies risk becoming a short-term political response unless they are directly linked to delivery capacity, skills and training, according to specialist water recruitment firm Murray McIntosh. This follows reports that ministers are considering new debt limits for water companies amid ongoing concerns surrounding the financial position of Thames Water.



While greater accountability and financial resilience are clearly needed, Murray McIntosh warns that financial targets alone will not resolve the core challenge facing the sector, which is the ability to deliver the scale of infrastructure improvement now required.



The firm argues that every discussion about investment, regulation and delivery should also consider workforce capacity and skills. With AMP8 placing unprecedented pressure on water companies and their supply chains, the sector will need access to engineers, project managers, technicians, plant operators and electrical and mechanical specialists at a scale that cannot be achieved by recruitment alone.



According to Murray McIntosh, the fact that the industry continues to compete for the same pool of experienced talent, rather than building new capability through apprenticeships, conversion pathways, structured technical training and supplier development, is a significant risk to the future of water.

The firm believes financial and delivery targets must therefore be tied to a more joined-up workforce strategy. Without this, the sector risks setting ambitious targets without the people, skills or training infrastructure required to meet them.



Adam Cave, Managing Director of Murray McIntosh, explains:



“It is understandable that there is growing pressure to strengthen the financial resilience of the water sector, but debt targets cannot be viewed in isolation. If financial and delivery targets are not connected to skills, training and workforce planning, they will not solve the problem. The industry is being asked to modernise ageing infrastructure, meet tighter environmental standards, improve customer outcomes and deliver major AMP8 programmes. That is not just a funding challenge, it’s also a people one.



“The sector already faces significant competition for experienced engineering and project delivery talent, not only within water but across energy, rail and wider infrastructure. Water companies cannot simply hire their way out of this. The talent pool is already stretched, and every major framework risks moving the same people around rather than increasing the capability of the market.



“That means recruitment has to be part of a much broader workforce strategy. The industry needs to invest in apprenticeships, technical training, conversion routes and supplier development so that it is building the skills base it will rely on, not just competing for it.



“If Government, regulators and water companies are setting financial and delivery targets, they should also be asking whether the sector has the workforce to meet them. A target without a skills plan risks becoming another public promise that the industry struggles to deliver.



“Pointing fingers over previous decisions may be politically convenient, but it does not repair assets, train engineers or get projects delivered. Lasting improvement will come from linking accountability with investment in people, skills and the supply chain capacity needed to turn plans into real progress. For customers, the test is not whether the sector can produce new targets. It is whether those targets translate into better services, stronger resilience and visible improvement. That will only happen if the industry treats workforce planning as central to delivery, rather than as an afterthought.”



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