Thames Water diverted funds meant for environmental clean-ups to other costs, including bonuses and dividends, potentially breaching their licence. Despite public commitments to prioritize environmental improvements, the company continued paying dividends and bonuses while cutting promised projects to tackle river pollution. The company claimed rising costs led to delays or non-delivery of 98 environmental schemes. Ofwat was formally informed only in 2023, and Thames Water was fined for unjustified dividend payouts while also increasing customer bills. The report highlighted Thames's internal decisions and ongoing financial struggles, including seeking significant funding to prevent collapse.