Music critic Neil McCormick described Thompson as "a versatile virtuoso guitarist and a sharp observational singer-songwriter whose work burns with intelligence and dark emotion". His songwriting has earned him an Ivor Novello Award and, in 2006, a lifetime achievement award from BBC Radio. His 1991 song "1952 Vincent Black Lightning" was included in "Time" magazine's "All Time 100 Songs" list of the best English-language musical compositions released between 1923 and 2011. Thompson was appointed Officer of the Order of the British Empire (OBE) in the 2011 New Year Honours for services to music. Many varied musicians have recorded Thompson's compositions.