The UK Environment Secretary, Dame Angela Eagle, is planning further action against persistently underperforming water companies, including tougher consequences for executives and scrutiny of the worst pollution incidents, the government said on 29 October 2026.

The move follows the first joint report from the Environment Agency, Natural Resources Wales, the Drinking Water Inspectorate and Ofwat, which pooled data for the first time. The government said this closes loopholes that let failing firms rely on a good score from one regulator while falling short with another. The report was published alongside the Environment Agency's Environmental Performance Assessment, which found pollution incidents remain far too high and only one company achieved the top four-star rating. It recorded six Category 1 incidents during 2025, which will be prioritised for ministerial visits.

Under rules effective in 2025, one-star ratings automatically block executive bonuses at Southern Water, Thames Water, South West Water and Yorkshire Water, as does any Category 1 pollution incident. The government said these rules trigger bonus bans for six chief executives, while Eagle is examining options to strengthen the ban. Ministers will also set improvement actions for each company and meet chief executives of underperforming firms. Further details on strengthening the bonus ban are expected in the coming weeks.