# Eight water firms fail environment test despite billions spent

> England's water companies have worsened their environmental performance despite investment, with eight of nine rated poor or needing improvement.
- Title: Eight water firms fail environment test despite billions spent
- Summary: England's water companies have worsened their environmental performance despite investment, with eight of nine rated poor or needing improvement. Eight of…
- Keywords: water companies, environment agency, angela eagle, thames water, pollution, england, privatisation, environmental regulation, news, world, Eight, water
- Source: the Guardian — https://theguardian.com/business/2026/oct/29/ministers-water-bosses-report-performance-worse
- Published: 2026-10-29T16:39:48+00:00
- Read time: 1 min
- Topics: water companies, environment agency, angela eagle, thames water, pollution, england, privatisation, environmental regulation, news, world
## Eight firms rated poor or needing improvement
A joint report by the Environment Agency, Drinking Water Inspectorate, Natural Resources Wales and Ofwat found eight of England's nine water companies failed environmental standards.
## Pollution incidents barely fell despite investment
There were 74 serious pollution incidents, just one fewer than the previous year, despite billions of pounds of investment and bans on bosses' bonuses.
## Environmental ratings hit lowest point on record
Water companies scored 16 stars out of a possible 36, down from 19 the previous year and the lowest score since the assessment process began.
## Pollution incidents up 40 percent since 2016
Overall pollution incidents in England reached 2,666 in 2025, a 40 percent increase on 2016. Thames Water had the most, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water.
## Environment secretary warns of root-and-branch reform
Angela Eagle, the environment secretary, summoned water industry bosses to Whitehall and said people are sick of excuses. She warned that root-and-branch reform cannot wait.

> People are sick of excuses
## Defra prepares tougher consequences for executives
The Department for the Environment, Food and Rural Affairs said it would set out improvement actions including tackling leakage and reducing pollution incidents, with tougher consequences for failing company executives.
## Key takeaway

Eight of England's nine water companies failed environmental assessments despite billions in investment, prompting the environment secretary to warn of root-and-branch reform.