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Research reveals that the public have transferred almost £200bn to private investors who control key British industries since their sell-off.

This substantial transfer of tens of billions of pounds to the shareholders of privatised water, rail, bus, energy, and mail utilities comes as families confront rising bills, contaminated rivers and seas, and costly and inconsistent trains and buses.

Consequently, citizens have been footing a “privatisation premium” of approximately £250 per household per year since 2010 alone.

Attention on Utilities Sector

Latest scrutiny has focused on the sold-off water industry, which has accumulated long-term debts of £73bn and distributed dividends of £88.4bn over the past 34 years, at the same time presiding over record sewage discharges.

Key Findings from the Study

• Approximately £193bn has been transferred to investors of bus, train, mail, energy, and water companies since the 1990s.
• Nearly a quarter of the average energy bill in 2024 went toward corporate profits.
• Energy network firms achieved an operating profit margin of 55% between 2020-24, versus a FTSE 100 average of 15%.
• Half of the rail sector's income in 2023-24 came from taxpayers via direct or indirect subsidies, yet profits went to shareholders.
• One in five commercial bus services have disappeared since 2019.
• Rolling stock companies paid dividends equivalent to 102% of their post-tax profits over the past eight years.
• Directors earned pay packages totaling over £662.8m between 2020-24 across water, rail, mail, bus, and energy companies.
• Energy investment as a share of GDP was twice as high under state ownership than during the privatised era.

Financial Drain Persists

The analysis shows that the diversion of wealth from the public to shareholders has continued over the last decade. Since 2010, £114.6bn has been channeled to shareholders of energy, water, rail, bus, and mail firms from customer bills and travel fares.

This equals £7.2bn per year in total, or roughly £250 per home annually—a clear “privatisation premium.”

“The reality is that who controls and manages our essential services and infrastructure profoundly matters.”

Historical Background

The study found that between 1981 and 1996, the push to privatise key industries was faster and more extreme in the UK than in almost any other advanced economy.

During this period, the UK shed gross public wealth at a rate of 7.4% of national income per year for 15 years. Among wealthy world economies, only Russia, Hungary, and the Czech Republic lost public wealth faster during their shift from communism to capitalism.

Calls for State Control

Numerous experts contend that some form of common ownership or state control is necessary in key industries to enable medium- and long-term planning—not only to meet climate targets but also to ensure systems are robust enough to withstand climate shocks.

“Almost all wealthier democracies have mail, transport, energy, and water in public ownership. We still do not.”

Public Opinion and Policy Response

Per a recently published survey, most Britons believe utilities and public transport should be run in the state sector.

Since taking office, some moves toward nationalisation have been taken, including bringing some train operators back into state hands and establishing publicly owned energy entities.

Examples of Successful Public Models

We see growing examples of public ownership models that provide value for money. In certain regions, local councils own majority stakes in bus companies, and integrated transport systems are being developed under public management.

Oversight View

A financial watchdog for the water sector stated that companies must comply with all applicable legislation and standards when paying dividends, and those failing to deliver or facing financial difficulties may need to limit or eliminate dividend payments.

To calculate the dividends paid across these sectors, analysts reviewed dividend data from financial databases, company statements, academic literature, and regulatory sources.