Eight of England's nine water companies still failing on environment, joint report finds

Eight of England's nine big water companies have been rated “poor” or “requiring improvement” for environmental performance in a joint regulatory report. The report found the companies' environmental performance has worsened despite billions of pounds of investment.

The Environment Agency, the Drinking Water Inspectorate, Natural Resources Wales and Ofwat pooled their data for the first time to produce the joint report. After its publication, Environment Secretary Angela Eagle summoned water industry bosses to Whitehall.

According to the report, there were 74 serious pollution incidents — the category that causes significant harm to the environment — just one fewer than the previous year, despite billions of pounds of investment, bans on bosses' bonuses and a public outcry.

The companies' environmental performance ratings added up to just 16 stars out of a possible 36, down from 19 the previous year and the lowest score since the assessment process began. Overall there were 2,666 pollution incidents in England in 2025, a 40% increase on 2016. Thames Water had the most, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water.

“People are sick of excuses,” Angela Eagle said. She warned that changes could be imposed on the industry: “Water companies have let the public down time and time again, and today's report is further proof that root-and-branch reform cannot wait.”

The Department for Environment, Food and Rural Affairs (Defra) said Eagle was preparing “further action”, with “tougher consequences” for executives at failing companies, and would set out clear improvement actions such as tackling leakage, reducing pollution incidents and improving customer satisfaction. Rules that took effect last year block bonuses for executives at companies receiving a one-star rating.

Environmental campaigners called for stronger action. James Wallace, chief executive of River Action, said the system rewards shareholders and creditors while rivers, wildlife and bill payers lose out. He said Thames Water, the worst offender, ought to go into special administration immediately.

Richard Benwell, chief executive of Wildlife and Countryside Link, said a new regulator must be more than a merger of existing institutions: it needs a clear legal duty to restore nature, strong environmental targets and the powers and resources to enforce the law. The joint report is seen as a step towards combining currently fragmented regulatory responsibilities under a single watchdog.

The report also noted that the UK is one of only two countries in the world where water provision is fully privatised. The other is Chile, where water privatisation was imposed in the 1980s by a military dictatorship.