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Every year the demand, expectation and, sadly, the price tag of the top toys of the year increase, especially in the build up to Christmas.

In order to keep track of the trends, here we take a nostalgic look at the toys, games and tech that has topped wish lists for the past 30 years – according to data from the Toy Retailers Association.

Some items that topped the list in multiple years have been combined.

A Thunderbirds Tracy Island game at the Total Fun Toy Fair at Earls Court, London. The British Association of Toy Retailers announced its year's top ten Christmas Toys and the annual scramble for the fastest selling toys is now expected earlier than usual. * with some stores already reporting shortages of best-selling items.

1993: Thunderbirds Tracy Island

The year is 1993, and in living rooms all over the UK the Thunderbirds Tracy Island play set is being unwrapped.

The toy, made by Matchbox, depicted the secret base of the international rescue team who had a fleet of space, land, air and sea rescue craft aptly named Thunderbird 1,2, 3, 4 and 5.

Despite the show having begun around 30 years earlier, the release of the set in the 1990s marked the start of technology being used in toys.

Blue Peter presenter Anthea Turner with a model of Tracy Island, the Thunderbirds Headquarters, made from household rubbish.  THe BBC closed their offer of a free 12 page leaflet on how to make the model.
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Blue Peter presenter Anthea Turner created a DIY model of Tracy Island made from household rubbish

“It was a big moment for boomer dads to really introduce something that they loved in the 60s to something that their kids loved,” William Newton, a curator, at the Young V&A Museum said.

“I was about five in 1993, and I remember my dad would say: ‘It’s Friday night, we are going to watch Thunderbirds’. And then with the toy, you couldn’t get one for love nor money.”

Thankfully, even if shop shelves were empty, an episode of Blue Peter hosted by Anthea Turner taught families across the country how to make a DIY version of the island, largely out of paper mache.

“It became this ‘must have’ toy and then there was a way that anyone could have it, if you had newspapers, paint and some egg boxes. It was quite brilliant really,” Mr Newton said.

Use the slider to see the evolution of the Power Rangers figurines from 1994 to 2017.

1994: Power Rangers

In May 1994, another set of superhero type figurines hit shop shelves, the Power Rangers.

First launched by Japanese company Bandai, the figures became an instant hit with children following the release of television series Mighty Morphin Power Rangers, in which a team of teenagers are recruited to battle enemies like Rita Repulsa and the Megazord.

(1994) Teenage Mutant Ninja Turtles/power Rangers At The Museum Of London.
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A range of 1994 Power Rangers at The Museum of London


The franchise continued its success into the modern day, with 30 television series and three motion picture films, the final of which was released in 2017, the same year the Ultra Movie Megazord figurine neared the top of Christmas lists.

A set of OJ Simpson trial 'pogs' depicting Simpson, attorneys in the case, Judge Ito and the victims are displayed March 8 at the Criminal Courts building, site of the Simpson trial in Los Angeles. The 'pogs' are the newest collector craze and sell for $8 per set
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A set of OJ Simpson trial POGs

1995: POGs

Simply put, POGs involved stacking a pile of round discs of card that were once used to cover milk bottles produced by Hawaii-based company Haleakala Dairy.

The game got its name after the company put the name of their tropical fruit drink – Passion fruit-Orange-Guava or POG for short – on them, according to the Makawao History Museum.

Players would then take turns hitting the stack with another cap trying to flip the caps over on what was known as a slam board.

Soon, each disc had a different symbol, with some referring to popular films, political figures and even high-profile criminal cases like the OJ Simpson trial in the US.

Mr Newton put the popularity of POGs down to them being collectable items.

“Collectables are a way that children express their personalities, through the sort of things they collect, and how they arrange them into their favourite ones,” he said.

“A lot of that does come around Christmas, if you are selling POGs to children at Christmas, then you hope that they go on to buy more throughout the rest of the year.”

(dpa) - A Barbie doll from the 1990s is on display at the exhibition 'World of Barbies' in Munich, Germany, 7 October 2004. Altogether about 1,000 Barbie dolls are presented, including rare, expensive and specially designed collector dolls. The exhibition, commemorating Barbie's 45th birthday, will be open until 7 November 2004. Photo by: Peter Kneffel/picture-alliance/dpa/AP Images

1996: Barbie

An unsurprising entry, and, spoiler alert, not the only time Barbie features on the list.

The doll first went on sale in 1959, with Ruth Handler creating the brand after observing her daughter, Barbara, play with paper.

Since then, Mattel, which owns the brand, has consistently revealed new dolls, games, films and other products to keep Barbie firmly on top of Christmas lists or at least on the top 10 best sellers list.

“It just shows you the power of Barbie,” Michael Hick, Mattel vice president and UK country manager said.

Barbie is finally going to college and, of course, she's going to be a cheerleader. Mattel Inc. has started making a new, ultra-flexible Barbie doll who wears 19 different college cheerleading uniforms, depending on the city where she is being sold. At left is the North Carolina State University Barbie and to the right is the Duke Barbie on Tuesday July 22, 1997. The other schools include Auburn, Clemson, Georgetown, Oklahoma State, Penn State, Arizona, Arkansas, Florida, Georgia, Illinois, Miam
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1990s College Barbies

“Brand’s like Barbie, and the momentum it has created, it is an unbelievably huge thing for Mattel as a company.”

When asked why he thinks Barbie has managed to remain popular, Mr Hick said: “For one, it is down to design, so it has to start with the product. And then there is innovation, brands that mums remember playing with and now want their child to play with.

“We have brands that are really rich in history, so we do a great job of innovating within these to make sure that they are really relevant to the modern child.

“Then there is marketing. We really pride ourselves in the way we go to the market and the way we work with retailers both in store and online.”

File picture of cuddly models of the children's TV favourites 'The Teletubbies' at Toy 1997, the British Association of Toy Retailers Fair in London.

1997: Teletubbies

In March 1997, the world said “Eh-oh” to the Teletubbies.

The TV show followed brightly coloured creatures Tinky Winky, Dipsy, La-La and Po, and when toy company Golden Bear signed a licensing deal with BBC Worldwide to produce the first Teletubbies soft toys, the country entered Teletubby mania.

Use the slider to see the evolution of the Furby from 1998 to 2013.

1998-1999: Furby and Furby Babies

From one strange creature to another, the next two years saw the Furby top the most popular toys list.

Created by Hasbro, the Furby is described by the manufacturer as a “mysterious, fuzzy, lovable creature who can’t wait to be your child’s bestie”.

The original model was extremely popular in 1998, and the following year Furby Babies – a smaller version – also proved to be just as exciting to children who wanted their very own “digital pet” that came in a range of colours, spoke the Furbish language and could communicate with others of its kind.

Rhyder McClure lowers his happy daughter Alexandra, 8, after lifting her to the top shelf to reach the Furby Baby toy she wanted at the Herald Square Toys "R" US store August 31 in New York. The two were among the first in line for the first sales of the new Tiger Electronics toy unveiled for sales for the first time. The smaller version of the successful Furby toy has a 25% increase in vocabulary and "learns" english faster than the original.
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Furby Babies in a shop

The Furby also hit the top of the list again in 2012, this time with an updated look and a mobile app.

“Furby benefit from improvements in technology,” curator Mr Newton said. “It’s kind of a pet care simulator. It is sold in the same way as ‘puppy is for life, not just for Christmas’. But it isn’t actually alive so it doesn’t matter.

“The technology is always slightly improving so they can always have an extra gimmick. It is like a mobile phone, it is not much different to older versions but it has got a better something.

“Furby’s are examples of toys that consume a lot of children’s attention over the Christmas period.”

Toy expert Peter Jenkinson agreed, saying the Furby remakes are “fundamentally the same toy, just a bit cleverer”.

Use the slider to see the evolution of the Teksta from 2000 to 2013.

2000: Teksta

Manufactured by Manley Toy Quest, the popular Teksta (also marketed as Tekno) allowed children to have their very own robotic puppy.

The silver-coloured pooch had the ability to do tricks and also required walking and feeding.

The product also took the top spot in 2013, under the slightly different name Texta Robotic Puppy and an upgraded look.

The toy was available in blue or pink and came with a bone and small plastic ball which the dog could interact with.

Onua (left) and Tahu, two of LEGO's Bionicles, are displayed at Toy Fair trade show inside ExCel exhibition centre, east London. The LEGO TECHNIC Bionicle has been a consistent best seller throughout the year. * and has overcome the hype of Harry Potter to win the British Association of Toy Retailers' Toy of the Year 2001-2002.

2001: LEGO Bionicle

Another big hitter entering the list, LEGO.

Featuring characters like Onua and Tahu, the LEGO Bionicle range was the first in the brand’s history to focus on a rigid storyline, according to online toy shop, FireStarToys.com.

Marketed towards eight to 16-year-olds, it follows the exploits of the Toa, heroic biomechanical beings with innate elemental abilities whose duty is to maintain peace throughout their universe.

The company released a total of 30 Bionicle sets in 2001, which critically helped save the company from financial ruin at the dawn of the 21st century.

Beyblades, one of the top 10 toys children are expected to want for Christmas, on show at Dream Toys 2003. Teenage Mutant Ninja Turtles, one of the best-selling toys from the 1980s, are also set to make a Christmas comeback, experts said. * Toy shop bosses believe the fighting foursome will be among the top 10 presents children will be demanding this year. Another old-time favourite is Barbie through the sale of a "Swan Lake" version of the doll, according to the British Association of Toy Retai

2002 – 2003: Beyblades

Developed by Japanese company Takara, but sold by Hasbro, Beyblades was another collectable, where people could go head-to-head battling their spinning top toys.

The aim of the game was simple, with points awarded if the opponent’s Beyblade stops spinning, gets knocked out of the playing arena (the Beystadium) or is damaged.

Individuals could collect different types of Beyblades and launchers that sent the discs spinning into the match at varying speeds.

Robosapien toys are seen at the Dream Toys 2004 exhibition, which previews the year's top 10 toys and offers predictions from the Toy Retailers Association of the most popular toys for Christmas, in London, October 6, 2004. At the ripe old age of 45, Barbie was knocked off her perch on Wednesday by streetwise upstart Bratz in the Christmas battle of the dolls. REUTERS/Stephen Hird SH/ASA/acm

2004: Robosapien

Described as a “humanoid robot”, the Robosapien is a small robot that performed tasks and responded to its environment.

Almost 10 years on, the Robosapien is still on the market. Created by WowWee, the Robosapien X™ is an “exciting update” to the award-winning toy.

The newer model has not changed much in regards to looks, but now comes to life using either the controller or via iOS or Android mobile device.

Tamagotchi Connexion V3, Bandai (RRP £12.99), one of the hotly-tipped "dream toys" for this Christmas.

2005: Tamagotchi Connexion

Another product that has stood the test of time is the Tamagotchi – a small three-buttoned device that allows you to grow and look after your own virtual pet.

Tamagotchi Connexion
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Pic: Glenn Copus/Shutterstock

The Connexion series, which first hit shelves in 2004 eight years after the first Tamagotchi, had an important difference – it used infrared technology to connect and interact with other devices.

In addition to playing games two Tamagotchi could go through six levels of friendship, the last being partners and having a baby.

Dr Who Cyberman Mask, Character Options (RRP £29.99), one of the hotly-tipped "dream toys" for this Christmas.

2006: Doctor Who Cyberman Mask

The influence of popular culture on toy sales is no more evident than the Doctor Who Cyberman Mask.

Hitting shops after the hugely popular sci-fi series aired in which David Tennant played the 10th doctor and Billie Piper his assistant Rose Tyler.

The Cybermen featured heavily throughout the series including the last episode Doomsday – which any Whovians will know was the heartbreaking episode when the partnership between the Doctor and Rose came to an end.

It is no surprise that the mask, complete with voice changing capabilities, was extremely popular among children and adults alike.

“Licensed stuff is massive,” toy expert Mr Jenkinson said.

“25% of all toys sold in the UK are brought by adults for themselves or other adults. Which is why when you look at licensed brands, they sometimes focus on older television shows and brands. They are just seeking nostalgia.

“Parents are buying kids the toys that they really want for themselves.”

The In The Night Garden - Blanket Time Igglepiggle, one of the Dream Dozen Toys 2007 unveiled by the Toy Retailers Association at Mary's Church, central London.

2007: In the Night Garden Blanket Time Igglepiggle

Created by one of the co-creators of the Teletubbies, In The Night Garden was first aired on CBeebies in 2007. The huge success led to sales of merchandise, including one of the show’s main characters, Igglepiggle.

Ben 10 Alien Force Kevin Levin's Action Cruiser. Pic: Toy Retailers Association
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Ben 10 Alien Force Kevin Levin’s Action Cruiser. Pic: Toy Retailers Association

2008: Ben 10 Action Figures

Ben 10 followed a young boy named Ben Tennyson, who discovers the Omnitrix – a high-tech, extraterrestrial device shaped like a wristwatch.

The device allowed him to change into various alien species, the figures of which flew of shop shelves in the UK.

Steph Scarlet, an employee at the Argos store on Humphrey Street in south east London, loads the shelves with stocking filler trend Go Go Hamsters, one of Argos' Top Ten Toys for Christmas.

2009: Go Go Hamsters

Described as “no ordinary pets” by creators Cepia LLC, Zhu Zhu Pets, known in the UK as Go Go Pets, are hamster-like electronic creatures.

They have been named toy of the year nine times in seven different countries.

Kailum Alden, aged 9 with Jet Pack Buzz Lightyear, Mattel UK (..39.99) .which has been predicted to be one of the top twelve toys this Christmas at the Toy Retailers Association...s (TRA) Dream Toys 2010 media preview, St Mary...s Church, Marylebone, London. PRESS ASSOCIATION Photo. Picture date: Wednesday October 27, 2010. The 2010 annual Dream Toys list from the TRA, the industry...s official prediction of Christmas best-sellers, is packed full of kiddie versions of adult must-haves. Photo credit should read: David Parry/PA Wire.
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Pic: David Parry/PA Wire.

2010: Jet Pack Buzz Lightyear

Coinciding with the release of Toy Story 3, the Jet Pack Buzz Lightyear was the action figure every child wanted.

It included a rocket pack with afterburner jet lights and sounds.

A LeapPad Explorer, one of the top 12 toys for Christmas 2011 predicted by the Toy Retailers Association (TRA).

2011: LeapPad Explorer

A child friendly version of an Apple iPad? Look no further than the LeapPad Explorer.

The device combined education and toys, allowing kids to read books, play games and listen to music.

A Snow Glow Elsa Doll from the Disney film Frozen at the Toy Show in the RDS, Dublin, the doll has proven so popular that on Friday Gardai were called to a toy store in Dublin after a fight broke out between customers desperate to get their hands on it. PRESS ASSOCIATION Photo. Picture date: Wednesday November 26, 2014. Photo credit should read: Niall Carson/PA Wire

2014: Disney Frozen Snow Glow Elsa

With the success of Disney’s Frozen in December 2013, it is no surprise that a doll in the shape of one of the film’s protagonists was the top toy in 2014.

It even belts out the popular song Let It Go.

The doll proved so popular at the time that police in Ireland were called to a toy store in Dublin after a fight broke out between customers desperate to get their hands on it.

Undated handout picture of Hasbro's Pie Face. It is on the Toy Retailers Association (TRA) annual DreamToys list of predicted top sellers. PRESS ASSOCIATION Photo. Issue date: Wednesday November 4, 2015. See PA story CONSUMER Toys. Photo credit should read: /PA Wire..NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.
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Pic: PA Wire

2015: Pie Face

The only board game of the list, and what a corker it is.

Launched by Hasbro, the game revolves around the gag of getting a pie in the face, as each player takes turns to crank a mechanical handle, which could trigger a hand (ideally full of whipped cream) to launch straight onto their face.

Hatchimals on display at the DreamToys 2016 event held at St Mary's Church, Marylebone, London.

2016: Hatchimals

Another animal-themed toy with a difference.

When you buy the Hatchimal, you buy an egg and over time, the robotic animal hatches, with children getting one of a number of different species.

L.O.L. Surprise! Fashion Show Doll Assortment. Pic: Toy Retailers Association
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Pic: Toy Retailers Association

2017- 2019: L.O.L Surprise!

The dolls with big heads, giant eyes and wearing brightly coloured clothing. L.O.L is one of the few newer brands to break into the toy industry.

Created by MGA Entertainment, each layer of the L.O.L packaging contains a new “surprise” whether that be outfits or accessories.

Fiona Mah aged 10 plays with the new L.O.L Surprise 2-in-1 Glamper
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L.O.L Surprise 2-in-1 Glamper. Pic: Rick Findler/Shutterstock

“They are end of aisle products,” toy expert Mr Jenkinson said when asked about the product’s success.

“Anything from three to six quid, and it is something that children can touch and reach. L.O.L is massive because it also makes mini versions of big brands.

“You can buy something that is quite cheap, but you can have bigger versions of it, so you can always expand your set.”

5 Surprise Mini Brands Mystery Capsule from Zuru. Pic: Toy Retailers Association
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Pic: Toy Retailers Association

2020: 5 Surprise Mini Brands Mystery Capsule from Zuru

During the COVID-19 pandemic when you had to queue outside supermarkets, people indulged in collecting as many miniature items of the nation’s favourite brands as possible.

Mini Brands by Zuru are marketed as the “brands that fit in your hands” and include replica packages of everything from Aunt Bessies Yorkshire Puddings to Skippy Peanut Butter.

Barbie Dreamhouse. Pic: Mattel
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Pic: Mattel

2021: Barbie Day to Night Dreamhouse

A twist on an old classic.

Squishmallows at Fora - Spitalfields in London during the unveiling of the annual DreamToys list compiled by an independent panel of retailers which predicts the top Christmas toys for the year. Picture date: Tuesday November 8, 2022.

2022: Squishmallows

The Squishmallow is a plush toy made by the company Jazwares.

The popularity of the soft toy was boosted by the likes of Lady Gaga, Kim Kardashian and others, who helped make the plush stuffed toys a viral sensation on TikTok.

Barbie Pop Reveal
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Pic: Mattel

2023: Barbie Pop Reveal

Last but by no means least is the Barbie Pop Reveal, described by Mattel vice president, Mr Hick, as an “unbelievable item”.

“It is a doll that essentially you can unbox and you have all these amazing sensory surprises as you unwrap a doll in a drink cup,” he said.

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US woman Aimee Betro found guilty of conspiracy to murder Birmingham shop owner

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US woman Aimee Betro found guilty of conspiracy to murder Birmingham shop owner

A would-be assassin who flew from the US to kill a Birmingham shop owner as part of a violent feud has been found guilty of conspiracy to murder.

Birmingham Crown Court heard how Aimee Betro, 45, flew from the US to murder shopkeeper Sikander Ali at point-blank range outside his home in the Yardley area of the city in September 2019.

Prosecutors alleged that Betro hid her identity using a niqab when she tried to shoot Mr Ali – but the gun jammed, allowing him to flee.

Betro – originally from Wisconsin – was part of a plot orchestrated by co-conspirators Mohammed Nabil Nazir, 31, and his father, Mohammed Aslam, 56, who were in a violent feud with Mr Ali’s family.

Mohammed Nabil Nazir and Mohammed Aslam were jailed in November 2024.
Pic: West Midlands Police/PA
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Mohammed Nabil Nazir and Mohammed Aslam were jailed in November 2024.
Pic: West Midlands Police/PA

During her trial, Betro said she had travelled to the UK on two previous occasions, having met Nazir on a dating app.

Asked why she had paid a third visit to the UK, arriving at Manchester Airport from Atlanta around two weeks before the shooting, Betro told jurors: “To celebrate my birthday, and I won tickets for another boat party in London.”

The court was shown CCTV of Betro waiting for 45 minutes outside Mr Ali’s house on the night of 7 September 2019.

As Mr Ali arrived home, Betro approached him with a firearm, but the gun failed to fire. Mr Ali is seen jumping back into his car and reversing away, clipping Betro’s driver’s side door in the process.

CCTV image said to show Aimee Betro in Birmingham following the attempted shooting of Sikander Ali in September 2019. Pic: PA
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CCTV image said to show Aimee Betro in Birmingham following the attempted shooting of Sikander Ali in September 2019. Pic: PA

The court heard Betro then goaded Mr Ali’s father, Aslat Mahumad, with whom her co-conspirators had a feud, through text messages including: “Where are you hiding?”, “Stop playing hide and seek, you are lucky it jammed,” and asking him to meet her at a nearby Asda.

Jurors were told co-conspirators Nazir and Aslam had been injured during disorder at Mr Mahumad’s clothing boutique in Birmingham in July 2018, leading them to conspire to have someone kill him or a member of his family.

In the early hours of the next morning and just hours after the failed shooting, Betro booked a taxi and returned to Mr Ali’s home, where she fired three shots at the property, which was empty at the time.

She then fled back to the US the next day before becoming involved in another of Nazir’s plots to get revenge on a rival.

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Prosecutors also said Betro sent three parcels full of ammunition and gun parts to the UK on 16 October 2019.

The court heard the parts, which were wrapped in foil and paper inside three cardboard boxes, were addressed to a man from Derby, with Nazir tipping off the police with the intent to frame him.

While the packages were intercepted and the man arrested as part of what the prosecution said was Nazir’s “devious scheme”, his involvement in the plan eventually came to light, and he was released without charge.

Betro, it said, was seen at a post office 100 miles away from her home address in the US posting the parcels under a fake name.

In the case of each of those three packages, Betro’s DNA has been found on the gun parts and ammunition inside them.

Betro had claimed it was all a coincidence, saying the woman on the CCTV was another American who looked, dressed and sounded like her.

It was alleged that Betro was in Armenia when Nazir and Aslam were jailed for 32 years and 10 years respectively in November 2024, but was extradited in January this year to face her own criminal proceedings.

Jurors deliberated for almost 21 hours before convicting Betro of conspiracy to murder, possessing a self-loading pistol with intent to cause fear of violence, and a charge of illegally importing ammunition.

She was found guilty by majority verdicts on the conspiracy to murder and firearm charges, and by a unanimous verdict on the ammunition charge.

Speaking to Sky News, Detective Chief Inspector Alastair Orencas, from West Midlands Police’s Major Crime Unit, called Betro’s crime “a brazen attempt,” adding that there “doesn’t seem to be a whole lot of effort to avoid detection”.

“I think she fell foul of a really slick, dynamic law enforcement operation over here,” he said.

“I don’t know whether that was her perspective from America, that that’s how we operate, but zero tolerance around firearms, criminality on these shores.”

Betro was remanded in custody and will be sentenced on 21 August.

Hannah Sidaway, specialist prosecutor from the Crown Prosecution Service in the West Midlands, said: “Only Betro knows what truly motivated her or what she sought to gain from becoming embroiled in a crime that meant she travelled hundreds of miles from Wisconsin to Birmingham to execute an attack on a man she did not know.”

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Thames Water crisis: Ministers line up administrator for utility giant

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Thames Water crisis: Ministers line up administrator for utility giant

Ministers have lined up insolvency practitioners to prepare for the potential collapse of Thames Water, Britain’s biggest water utility.

Sky News can exclusively reveal that Steve Reed, the environment secretary, has signed off the appointment of FTI Consulting to advise on contingency plans for Thames Water to be placed into a Special Administration regime (SAR).

Sources said on Tuesday that the advisory role established FTI Consulting as the frontrunner to act as the company’s administrator if it fails to secure a private sector bailout – although approval of such an appointment would be decided in court.

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Thames Water, its largest group of creditors and Ofwat, the industry regulator, have been locked in talks for months about a deal that would see its lenders injecting about £5bn of new capital and writing off roughly £12bn of value across its capital structure.

The discussions are said to be progressing constructively, although they appear to rely in part on the prospect of the company being granted forbearance on hundreds of millions of pounds of regulatory fines.

Responding to an enquiry from Sky News on Tuesday, a government spokesperson said: “The government will always act in the national interest on these issues.

More on Thames Water

“The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary.”

Insiders stressed that FTI Consulting’s engagement by the Department for the Environment, Food and Rural Affairs (DEFRA) did not signal that Thames Water was about to collapse into insolvency proceedings.

A SAR would ensure that customers would continue to receive water and sewage services if Thames Water collapsed, while putting taxpayers on the hook for billions of pounds in bailout costs – a scenario the chancellor, Rachel Reeves, is keen to avoid at a time when the public finances are already severely constrained.

The SAR process can only be instigated in the event that a company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order, according to insiders.

Mr Reed has repeatedly stressed the government’s desire to avoid taking Thames Water into temporary public ownership, but that it was ready to deal with “all eventualities”.

“Thames Water must meet its statutory and regulatory obligations to its customers and to the environment–it is only right that the company is subject to the same consequences as any other water company.

The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities,” he told the House of Commons in June.

Thames Water, which has about 16m customers, serves about a quarter of the UK’s population.

It is drowning under close to £20bn of debt, and was previously owned by Macquarie, the Australian infrastructure and banking behemoth.

Its most recent consortium of shareholders, which included the Universities Superannuation Scheme and an Abu Dhabi sovereign wealth fund, have written off the value of their investments in the company.

The government’s SAR process has only been tested once before, when the energy retailer Bulb failed in 2021.

Bulb was ultimately sold to Octopus Energy with the taxpayer funding used to save and run the company since having been repaid.

Thames Water is racing to secure a rescue plan involving funds such as Elliott Management and Silver Point Capital, with a deadline of late October to appeal to the Competition and Markets Authority against Ofwat’s final determination on its next five-year spending plan.

Ofwat has ruled that Thames Water can spend £20.5bn during the period from 2026, with the company arguing that it requires a further sum of approximately £4bn.

Mike McTighe, a veteran corporate troubleshooter who chairs BT Group’s Openreach division, has been parachuted in to work with the funds.

The company said in its accounts last month that there was “material uncertainty” over whether it could be solvently recapitalised.

Earlier this year, Thames Water was fined a record £123m over sewage leaks and the payment of dividends, with Ofwat lambasting the company over its performance and governance.

In recent weeks, Thames Water has been engulfed in a row over the legitimacy of bonuses paid to chief executive Chris Weston and other bosses, even as it attempts to secure its survival.

Under new laws, Thames Water is among half a dozen water companies which have been barred from paying bonuses this year because of their poor environmental records.

The creditor group was effectively left as the sole bidder for Thames Water after the private equity firm KKR withdrew from the process, citing political and reputational risks.

The Hong Kong-based investor CK Infrastructure Holdings (CKI), which already owns Northumbrian Water, has sought to re-engage in talks about a rescue deal but has gained little traction in doing so.

News of FTI Consulting’s appointment also comes on the same day as a “nationally significant” water shortfall was declared across swathes of the country.

Last week, Sky News revealed that David Black, the Ofwat chief executive, was to step down following the publication of a government-commissioned review which recommended the regulator’s abolition.

He has been replaced by Chris Walters, another Ofwat executive, on an interim basis.

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UK weather: Water shortfall declared ‘nationally significant’ – as amber heat health alert set to strike

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UK weather: Water shortfall declared 'nationally significant' - as amber heat health alert set to strike

The water shortfall situation in England has been described as a “nationally significant incident”, with five areas officially in drought ahead of an amber heat health alert coming into force for large parts of the country.

Six further areas are experiencing prolonged dry weather following the driest six months to July since 1976.

Many river flows and water reservoir levels in England continue to recede compared to June despite some storms and showers in July, which helped mask that it was still the fifth-warmest July on record.

A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters
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A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters

A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA
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A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA

Drier conditions have returned in August and now parts of the country are bracing for the fourth heatwave 2025, with today’s amber alert covering the East Midlands, West Midlands, East of England, London, and the South East.

Temperatures are forecast to rise above 30C (86F) in some areas, possibly even soaring past 35C (95F) in the south, threatening this year’s heat record of 35.8C (95.4F) in Faversham, Kent, on 1 July.

A milder yellow heat health alert is in place for the South West, North East, North West, Yorkshire and The Humber.

The alerts by the UK Health Security Agency (UKHSA) are due to be in place from 9am today until 6pm tomorrow, and put more pressure on struggling public water supplies and navigational waterways.

Check the weather forecast where you are

People enjoy the weather in Barnes on Monday. Pic: PA
Image:
People enjoy the weather in Barnes on Monday. Pic: PA

A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters
Image:
A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters

‘We are calling on everyone to play their part’

The National Drought Group (NDG), which includes the Met Office, government, regulators, water companies, the National Farmers’ Union, Canal & River Trust, anglers, and conservation experts, met at the start of the week to highlight the water-saving measures each sector is taking.

The group praised the public for reducing their daily usage, after Yorkshire Water reported a 10% reduction in domestic demand following the introduction of their hosepipe ban, which saved up to 80 million litres per day.

“The situation is nationally significant, and we are calling on everyone to play their part and help reduce the pressure on our water environment,” said Helen Wakeham, NDG chair and director of water at the Environment Agency.

“Water companies must continue to quickly fix leaks and lead the way in saving water.

“We know the challenges farmers are facing and will continue to work with them, other land users, and businesses to ensure everyone acts sustainably.”

Current drought situation in England

– Drought has been declared in: Yorkshire, Cumbria and Lancashire, Greater Manchester Merseyside and Cheshire, East Midlands, West Midlands.

– Areas in prolonged dry weather (the phase before drought) are: Northeast, Lincolnshire and Northamptonshire, East Anglia, Thames, Wessex, Solent and South Downs.

– Yorkshire Water has a hosepipe ban in place for all its customers, while Thames, South East, and Southern Water have postcode-specific bans.

– Reservoirs fell by 2% last week and are now 67.7% full on average across England. The average for the first week of August is 80.5%.

– The lowest reservoirs are Blithfield (49.1%), Derwent Valley (47.2%), Chew Valley Lake (48.3%), Blagdon (46.3%).

– Rainfall in July was 89% of the long-term average for the month across England. This is the sixth consecutive month of below-average rainfall.

– Across the country, 51% of river flows were normal, with the rest below normal, notably low or exceptionally low.

– Two rivers – Wye and Ely Ouse – were the lowest on record for July.

– There are currently navigation closures or restrictions across sections of the Leeds and Liverpool, Macclesfield, Trent and Mersey, Peak Forest, Rochdale, Oxford and Grand Union Canal.

The rainfall at the end of July was welcomed by growers, even though the dry weather is set to have an impact on the harvest, with the National Farmers Union (NFU) noting how water shortages have impacted the growing season.

“Some farms are reporting a significant drop in yields, which is financially devastating for the farm business and could have impacts for the UK’s overall harvest,” NFU vice-president Rachel Hallos said.

Ms Hallos urged that investment in water infrastructure and a more effective planning system was urgently needed “to avoid the swing between extreme drought and flooding and to secure water supplies for food production”.

Read more:
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How heatwaves affect your health

Where are hosepipe bans in place?

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Drought in England explained

The dry weather also impacts the health of the waterways, as low water levels reduce oxygen levels in the water, which can lead to fish deaths, more algae growth, and could prevent wildlife from moving up or downstream.

Water minister Emma Hardy said the government is “urgently stepping up its response” to respond to dry weather, including investment in new reservoirs, but called on firms to do their bit.

“Water companies must now take action to follow their drought plans,” she said.

“I will hold them to account if they delay.”

Tips for staying cool from the UKHSA

  • Close windows and curtains in rooms that face the sun
  • Seek shade and cover up outside
  • Use sunscreen, wear a hat and sunglasses
  • Keep out of the sun at the hottest times, between 11am and 3pm
  • Restrict physical activity to the cooler mornings or evenings
  • Know how to respond to heat exhaustion and heatstroke

“We face a growing water shortage in the next decade,” the minister warned, which she said is why building new reservoirs – something the government has criticised the previous administration for not doing – is so important.

The hot and dry conditions have also led to warnings of wildfires, following blazes near Wimborne in Dorset and at Edinburgh’s Arthur’s Seat over the weekend.

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