The Minister of State, Department for Environment, Food and Rural Affairs (Emma Hardy)
Today, for the first time, the Environment Agency, Ofwat, Natural Resources Wales and the Drinking Water Inspectorate are publishing a joint water company performance insights report. This reflects the Government’s drive for more integrated regulation of the sector, leaving companies with nowhere to hide poor performance. Alongside the environmental performance assessment for 2025 and operational performance report for 2025-26, it gives the public an overarching picture of how their water companies are performing and makes clear where companies are failing to deliver for the environment. Joined up scrutiny means companies can no longer point to progress in one area to distract from failures in another.
The findings show why change cannot wait. Poor performance is unacceptable. Pollution remains far too high, with too many serious pollution incidents. Only one company achieved the top four-star environmental rating, and four received the lowest one-star rating—the chief executive officers for these companies will not be eligible for bonuses under the new rules we have introduced. Too many customers still face avoidable service failures. Improvements in some areas do not excuse persistent failings elsewhere. While drinking water quality remains high, and though there has been progress on some customer and environmental measures, performance in other areas continues to fall short.
I am demanding answers from underperforming companies. Ministers will visit companies with the most serious pollutions to see what actions they are taking to prevent them happening again. We will call in chief executives to challenge failures and scrutinise delivery of vital infrastructure improvements. My message to the sector is clear: cut pollution, tackle leaks, improve customer service and deliver the infrastructure needed to secure future water supplies. The record investment approved for 2025 to ’30 must translate into visible improvements for customers, communities and the environment—not more excuses.
We have strengthened regulators’ enforcement powers through the Water (Special Measures) Act 2025. Companies that fail must face consequences, including fines and prosecutions where performance falls short. But accountability today must go hand in hand with lasting reform. Our forthcoming 10-year plan for Britain will set out stronger public control over water, underpinned by a strengthened Water Bill. The Secretary of State has already set out her expectations for the next price review to deliver better value for money for struggling households. More joined-up regulation now is part of building a water system that protects the environment, secures supplies and earns back the trust of the people who pay for it.
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