Thames Water Slumps to One-Star Rating as England’s Water Pollution Hits Record High

Thames Water has been handed a one-star rating for its environmental performance in 2024 as part of a damning report by the Environment Agency (EA) that paints a bleak picture of England’s water industry.

The new assessment revealed that serious pollution incidents across England rose by 60% compared with 2023 marking the sector’s worst overall score since the EA’s rating system began in 2011. Only Severn Trent managed to achieve the top four-star rating, while Thames Water came last out of nine major water and sewerage companies.

EA chair Alan Lovell said: “This year’s results are poor and must serve as a clear and urgent signal for change. What is needed now from every water company is bold leadership, a shift in mindset and a relentless focus on delivery. We will support them however we can but will continue to robustly challenge them when they fall short.”

Thames Water, already in financial turmoil, reported losses of £1.65bn earlier this year with debts climbing to £16.8bn. The company said: “Transforming Thames is a major programme of work that will take time; it will take at least a decade to achieve the scale of change required.”

The firm’s poor environmental record adds to its troubles, with the EA confirming that Thames, Southern Water, and Yorkshire Water were responsible for more than 80% of the most serious pollution cases. Thames alone saw serious sewage incidents more than double from 14 to 33 over the past year.

Water companies across England have faced growing public outrage over sewage discharges, rising bills, and executive bonuses. Campaigners say the system is failing both customers and the environment. James Wallace, chief executive of River Action UK, said: “Today’s report shows that water companies in England and Wales are still underperforming, especially on serious pollution incidents, exposing the bankruptcy of the privatised water model. We urgently need a complete overhaul of this failed system.”

Consumer groups echoed those concerns. Mike Keil from the Consumer Council for Water said: “Customers are now paying more than ever before through water bills and they will expect to see companies delivering on their promises to cut pollution and help bring rivers, lakes and wildlife habitats back to life.”

The government has promised tougher enforcement, with new powers allowing the EA to issue on-the-spot penalties of up to £500,000 for environmental breaches. However, critics argue that fines alone won’t fix decades of neglect. Meanwhile, the system used to rate the companies is being replaced. From 2027, the EA will move from a star-based system to a numeric one, where companies will be rated from one (“failing”) to five (“excellent”).

As public frustration grows, the government has announced plans to scrap Ofwat and create a single “super regulator” to oversee the entire sector. But even with new oversight on the horizon, the message from regulators and campaigners is clear — fixing England’s crumbling water system will take years, not months.