Serious pollution by water industry remains high despite £5bn investment

Key Points:

• Despite a £5bn investment over the last five years, the environmental performance of water companies in England and Wales worsened in 2025, with eight of nine companies rated as "poor" or "requiring improvement," and serious pollution incidents remaining at high levels.
• The first joint report by four regulators highlighted that while service disruptions have reduced and drinking water quality remains high, pollution into the environment is a major concern, with overall environmental performance receiving the worst score on record.
• Water companies face criticism for failing to deliver funded environmental improvement schemes, and customer complaints have surged by 84% in a year, leading to public frustration over rising bills and perceived lack of progress.
• The government plans to overhaul the water industry’s regulation, including merging regulators in England and introducing new legislation, while also considering new regional oversight bodies and expanding government ownership of water companies.
• Household water consumption in England and Wales remained steady in 2025 at 137 litres per person per day, despite warnings that demand must decrease to protect future supplies amid climate change and population growth pressures.