Thames Water, Britain’s largest water supplier, has drawn down the final £677 million portion of a £3 billion emergency debt facility as it tries to avoid running out of cash. The company says it has enough funding to continue into the last quarter of 2026, but its future depends on whether creditors, regulators and the incoming government can agree a rescue.

Thames Water serves around 16 million people, so it cannot simply close like an ordinary business. Services must continue regardless of who owns the company or how its debts are restructured.

How serious is the debt problem?

Thames Water reported statutory net debt of £18.5 billion at the end of March 2026. Liquidity has fallen, investment is still required and the company remains under scrutiny over pollution, leaks, complaints and executive rewards ...