England's Water Companies Hit Record Low in Environmental Performance, Sparking Calls for Reform

England's water companies collectively received their lowest environmental performance score on record in 2024, according to a recent report from the Environment Agency. The sector achieved just 19 out of a possible 36 stars in the annual Environmental Performance Assessment (EPA), a significant drop from 25 stars in 2023 and the worst outcome since the rating system began in 2011, as reported by the Environment Agency on October 23, 2025.

morningstar.com reported, This alarming decline was primarily driven by a substantial 60% increase in serious pollution incidents compared to the previous year, the Environment Agency confirmed. The regulator highlighted consistently poor performance across all nine water and sewerage firms, despite expectations for a reduction in such incidents.

Critics, including the GMB union, swiftly attributed this failure to the "catastrophic consequences of privatisation," arguing that shareholder interests have been prioritised over public service and environmental protection. Andy Prendergast, GMB National Secretary, stated that the privatised water sector is a "failing system starved of investment".

www.gov.uk noted, The Environment Agency's Chair, Alan Lovell, called for a "fundamental shift in culture and behaviour" from English water firms, acknowledging that the results are "poor and must serve as a clear and urgent signal for change". He pointed to persistent underinvestment in new infrastructure and poor asset maintenance as key contributing factors.

Thames Water emerged as the worst performer, receiving a mere one-star rating and seeing its serious pollution incidents more than double to 33 cases in 2024. In contrast, Severn Trent Water was the only company to achieve the top four-star rating, demonstrating industry-leading performance.

www.gov.uk reported, The Consumer Council for Water (CCW) expressed that many customers would feel "short-changed" by the water companies' performance, noting that only one in three households are satisfied with efforts to protect the environment. Mike Keil, CCW Chief Executive, emphasised that customers expect companies to deliver on promises to cut pollution, especially with rising bills.

This widespread failure has intensified calls for significant reform within the sector, with environmental groups and unions advocating for greater accountability and a re-evaluation of the privatised model. The latest findings underscore a growing crisis in England's waterways, demanding urgent and decisive action.

• morningstar.com noted, Historical Context and Privatisation Criticisms: The privatisation of England's water industry in 1989 was intended to drive efficiency and investment, but critics argue it has led to a system prioritising profit over environmental stewardship and infrastructure upgrades. UNISON's head of environment, Donna Rowe-Merriman, highlighted in May 2024 that consumers have paid billions, yet the environment is at "breaking point" due to underinvestment and debt used to finance shareholder dividends. The GMB union has consistently branded water privatisation as a "disastrous failure," citing fouled rivers, rising bills, and crumbling infrastructure.

• Escalation of Pollution Incidents: The 60% surge in serious pollution incidents in 2024 saw 75 Category 1 and 2 incidents recorded, up from 47 in 2023, according to the Environment Agency's report published on October 23, 2025. Three companies—Thames Water (33 incidents), Southern Water , and Yorkshire Water —were responsible for 81% of these most severe cases. Overall, total pollution incidents from sewerage and water supply assets increased by 29% to 2,801, marking the third consecutive annual rise and the highest number since 2011.

• www.gov.uk reported, Regulatory Response and Fines: Ofwat, the economic regulator, has taken action against underperforming companies. In August 2024, Ofwat proposed fines totalling £168 million for Thames Water (£104 million), Yorkshire Water (£47 million), and Northumbrian Water (£17 million) for failing to manage wastewater treatment works and networks. Furthermore, in May 2025, Ofwat finalised a record £122.7 million penalty against Thames Water for wastewater operation failures and breaches related to dividend payments, ensuring these costs are borne by the company and its investors, not customers.

• Impact on Public Trust and Health: The Consumer Council for Water (CCW) reported on October 23, 2025, that public satisfaction with water companies' environmental efforts is low, with only one in three households expressing contentment. Environmental groups like Surfers Against Sewage have highlighted the public health risks, with their April 2024 report indicating 1,853 sickness reports in 2024 linked to sewage pollution, including cases of gastroenteritis and serious bacterial infections. The GMB union also noted in April 2024 a rise in abuse towards water workers due to public anger over sewage leaks.

• www.gov.uk noted, Underlying Causes and Future Investment: The Environment Agency attributed the performance decline partly to a very wet and stormy 2024, which strained infrastructure, but primarily to long-term underinvestment and poor asset maintenance. Water UK, the industry body, acknowledged that while some areas show improvement, the performance of some companies is "not good enough". They stated that £104 billion in private investment is planned over the next five years to upgrade infrastructure and reduce sewage spills, aiming for a 40% reduction by 2030.

• Calls for Systemic Change: Environmental campaigners and unions are increasingly calling for a fundamental overhaul of the privatised water model. River Action's chief executive, James Wallace, stated on October 23, 2025, that the figures expose the "bankruptcy of the privatised water model" and called for a complete overhaul. UN Special Rapporteur on the human right to clean water, Professor Pedro Arrojo-Agudo, criticised the privatised English water system in October 2024, advocating for publicly owned services over private companies driven by shareholder benefit.

• morningstar.com reported, Increased Scrutiny and Monitoring: The Environment Agency is ramping up its regulatory efforts, planning to increase inspections from over 4,600 in 2024-25 to 10,000 in 2025-26, and further tightening its EPA criteria. This increased monitoring, alongside new digital data systems, aims to provide a clearer and deeper understanding of water company performance and hold them accountable.