Eight of Nine English Water Firms Rated Poor or Needing Improvement

Environment secretary Angela Eagle has summoned water industry bosses to Whitehall after a joint report found that the environmental performance of the big companies has worsened despite heavy investment. "People are sick of excuses," she said.

The report came from the Environment Agency, the Drinking Water Inspectorate, Natural Resources Wales and Ofwat. It rated eight of the nine water companies in England as "poor" or "requiring improvement". The four bodies pooled their data for the first time, a step towards combining fragmented regulatory duties under a single watchdog.

The numbers

There were 74 serious pollution incidents, the category that causes significant harm to the environment. That was only one fewer than the year before, despite billions of pounds of investment, bans on bosses' bonuses and public outcry.

The companies' ratings added up to 16 stars out of a possible 36, down from 19 a year earlier. It is the lowest score since the process began.

Across England there were 2,666 pollution incidents in 2025, a 40% rise on 2016, the Environment Agency said. Thames Water recorded the most, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water.

Government and industry response

Eagle warned that changes could be imposed on the industry. She said "root-and-branch reform cannot wait". The Department for the Environment, Food and Rural Affairs (Defra) said she is preparing further action, with tougher consequences for executives at failing companies. It will set out improvement actions on leakage, pollution incidents and customer satisfaction. Rules that took effect last year block bonuses at companies with a one-star rating.

James Wallace, chief executive of River Action, said Thames Water should go into special administration immediately. He called on ministers to review alternative models, including public ownership.

Richard Benwell, chief executive of Wildlife and Countryside Link, said a new regulator "must be more than a merger of existing institutions". He asked for a legal duty to restore nature and enforcement powers across the water industry, industrial agriculture and chemical companies.

Water UK, the industry trade body, pointed to the lowest level of leakage in history. It said more than half of last year's pollution incidents were caused by blockages or vandalism, which are not in the companies' direct control. "The fact remains that the environmental performance of some water companies is not good enough," it said.

Source: The Guardian