The Environment Agency declared drought status in Yorkshire on Friday 9 October 2026, citing low water levels in reservoirs and rivers following the region's fifth driest April-to-September period on record. The declaration came despite recent rainfall, with Area Environment Manager Vicki Townend stating that river flows and groundwater levels in parts of Yorkshire are 'very low and have reached the trigger for declaring a drought' [Source: GOV.UK (Environment Agency)]. The declaration follows an earlier designation of prolonged dry weather for the area at the end of July, attributed to a lack of spring and summer rainfall.
Yorkshire's inclusion brings the full sweep of central, southern and eastern England into drought status, while the North East and North West remain classified as being in prolonged dry weather. Water Minister Emma Hardy said that 'recent rainfall is not yet enough to replenish water used over the spring and summer and the situation remains serious' [Source: GOV.UK (Environment Agency)]. The Environment Agency said it is processing drought permit applications to allow water companies to reduce the amount of water they must provide into local rivers. The National Drought Group — which includes the government, the Met Office, regulators, water companies, farmers, the Canal & River Trust, anglers and conservation experts — is meeting weekly to coordinate the response.
Yorkshire Water, which supplies drinking water and wastewater services to around 5.5 million people and more than 140,000 businesses across the region, is owned by Kelda Holdings. Kelda Group was formerly listed on the London Stock Exchange and was a constituent of the FTSE 100 Index before being taken private by Saltaire Water in 2008 [Source: Wikipedia (Kelda Group)]. In March 2026, EQT agreed to acquire a 42% shareholding in Kelda Holdings, with GIC holding 42% and TCorp holding 16% following completion. Yorkshire Water is currently delivering an £8.3 billion capital programme during the 2025-2030 regulatory period, focused on environmental performance, infrastructure upgrades and resilience.
The Environment Agency noted this is the third drought in Yorkshire in five years, following previous events in 2022 and 2025. The agency cited climate change as a driver of longer, hotter summers and more intense winter rainfall, which it said is increasing the likelihood of both drought and flooding events. New research cited by the agency indicated it would take 120% of long-term average rainfall over the next seven months for all areas in England to be considered out of drought. Yorkshire Water's exposure to regulatory consequences in drought conditions has precedent: in 1996, Ofwat effectively fined the utility £40 million by freezing its ability to raise bills following its performance during the 1995 drought [Source: Wikipedia (Yorkshire Water)].
Sources: GOV.UK (Environment Agency), BBC News, Bloomberg, Water Magazine, EQT Group, Wikipedia