Eight of England's nine water companies have been rated as either 'poor' or 'requiring improvement' by the Environment Agency, prompting the environment secretary Angela Eagle to summon industry bosses to Whitehall. The watchdog's environmental performance assessment gave water companies a combined total of 16 'stars' out of a possible 36, down from 19 the previous year and the lowest score since the process began.
There were 74 serious pollution incidents in 2025, defined as those causing significant environmental harm, according to the Environment Agency report. This was just one fewer than 2024, despite billions of pounds of investment, bans on executive bonuses and sustained public criticism. Overall pollution incidents across England reached 2,666 in 2025, a 40% increase compared with 2016, the Environment Agency said. Thames Water recorded the most incidents, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water.
Eagle said the water industry had 'let the public down time and time again' and warned that changes could be imposed on the sector. The Department for Environment, Food and Rural Affairs said it was preparing 'further action' with 'tougher consequences' for executives at failing companies. Improvement measures under consideration include tackling leakage, reducing pollution incidents and improving customer satisfaction. Rules that took effect last year already block bonuses for executives at companies receiving a one-star rating.
Environmental campaigners have called for stronger action. James Wallace, chief executive of River Action, said Thames Water, the worst offender, ought to enter special administration immediately and called for ministers to end the privatisation model and review alternative options including public ownership. Richard Benwell, chief executive of Wildlife and Countryside Link, said any new combined regulator would need 'a clear legal duty to restore nature, strong environmental targets and the powers and resources to enforce the law'.
Water UK, the industry trade body, acknowledged that environmental performance at some companies was inadequate but pointed out that more than half of all pollution incidents last year were caused by blockages or vandalism outside companies' direct control. It said record investment levels would help secure water supplies and end sewage entering rivers and seas. The report marks the first time the Drinking Water Inspectorate, Environment Agency, Natural Resources Wales and Ofwat have jointly published data, moving towards combining currently fragmented regulatory responsibilities.
For bill payers and river users in England, persistent pollution despite substantial investment means the costs of environmental restoration are rising while the problem worsens rather than improves. The UK is one of only two countries in the world where water provision is fully privatised, the other being Chile.