England’s water companies have been rated as poor
or requiring improvement
by regulators in a first-of-its-kind joint report published Thursday. Despite a £5bn industry investment over the last five years, performance on environmental metrics hit record lows in 2025 as serious pollution incidents remained at high, concerning levels.
Record-Low Environmental Performance in 2025
The joint assessment, conducted by the Environment Agency, Natural Resources Wales, Ofwat, and the Drinking Water Inspectorate, marks the first time these four bodies have combined their oversight to review the industry. The findings reveal a stark gap between industry investment and environmental outcomes. Of the nine water companies operating in England, eight received failing marks, with only Severn Trent securing the highest rating.
According to the Environment Agency, England’s water companies achieved an overall score of 16 out of 36 possible stars—the lowest total ever recorded. The agency attributed this decline to both deteriorating performance in specific operational areas and the implementation of stricter regulatory standards.
Regulators Express Anger at Continued Pollution
The scale of the pollution incidents has drawn sharp criticism from government officials and regulators, who characterized the industry’s failure to meet basic standards as a major public concern. Alan Lovell, chair of the environmental regulator, did not mince words regarding the persistent contamination of waterways.
Environment Secretary Dame Angela Eagle stated she is currently demanding answers from the companies that are failing
and intends to be shining a spotlight on the worst offences around the country.
While the report acknowledged that drinking water quality in the UK remains among the best in the world
and that long-term leakage rates have decreased, regulators insisted that the industry is still requiring improvement
across the board.
Customer Complaints Surge as Bills Rise
Many customers have not noticed any improvement in customer service or performance
despite the rising costs, Keil said. He added that bill payers are increasingly questioning whether their payments are being effectively utilized, particularly as complaints to the council surged by 84% over the last year—the highest volume in 20 years.
Water Companies Blame External Factors for Pollution
Water UK, the industry trade body, admitted that the performance of some companies is not good enough
but argued that the sector faces external challenges. A spokesperson for the group stated that more than half of all pollution incidents result from blockages or vandalism,
which fall outside the direct control of the providers. The industry maintains that the record investments will eventually secure supplies and prevent sewage from entering rivers and seas, though they acknowledged that these changes will take time.
The government is preparing to respond through legislative reform. Prime Minister Andy Burnham has announced plans for a strengthened Water Bill, which aims to remove limits on government share ownership in major companies and grant local leaders new oversight powers. The government is also merging England’s regulatory bodies into a single entity to address the ongoing failures.