Pollution fines of more than £100m will go to environmental projects, Defra says
The Environment Department (Defra) said more than £100 million in fines and penalties levied on water firms for breaches such as illegal sewage spills since October 2023 – as well as future fines – will be reinvested in projects to clean up England's waters.
These could include local programmes to address pollution and improve water quality.
The announcement comes as the Government attempts to grapple with the problems engulfing the water sector in the face of high public anger over the degraded and polluted state of rivers, lakes and coasts, rising bills, bosses' bonuses and shareholder payouts.
The promise to reinvest money from fines into work to improve the environment was first made by the Conservative government in 2022, with local groups, farmers, communities and landowners invited last year to bid for an £11 million ringfenced pot of penalties levied since April 2022.
There were reports that, after the election, the Treasury was seeking to divert the money elsewhere, but Defra has confirmed a huge pot of cash for environmental projects as part of its efforts to sort out the water sector's pollution problems.
The Government has also pointed to the 'record' 81 criminal investigations that have been launched into water companies since it came to power and prison time for bosses who cover up illegal sewage spills and an independent review launched into the sector.
And troubled utility Thames Water was handed a record fine of £123 million in May, including £104.5 million for breaking rules over sewage treatment which contributes to the pot that will be spent on environmental projects.
Environment Secretary Steve Reed said: 'We inherited a broken water system with record levels of sewage being pumped into waters.
'But the era of profiting from failure is over,' he said.
'This Government will invest money collected through fines into local projects to clean up our rivers, lakes and seas for good.'
Environmental charity River Action's chief executive James Wallace said: 'Ringfencing water company fines for river restoration is a welcome move – but it's hardly new.
'The previous government pledged this in 2022, only for the new Chancellor to backtrack, prioritising growth over nature.
'If this Government is serious about making polluters pay, it must give the Department for Environment all the funding and powers it needs to enforce the law.'
He called for Thames Water to be put into a Special Administration Regime, and raised concerns whether, with a 3% cut in Defra's core budget in last week's spending review, the Environment Agency would be in a position to keep tabs on pollution and enforce the law.
'Regulators need boots on the ground, legal resources and access to courts, backed by consistent funding and most importantly, political will,' he urged.
The Government has also announced new 'sustainable drainage systems' standards to give developers clearer guidance on creating systems to collect and filter rainwater that mimic nature, like green roofs, permeable surfaces and areas to allow water to soak away without causing flooding.
These measures can help relieve pressure on the sewage system and prevent pollution overflowing into waterways, officials said.
Water minister Emma Hardy said: 'The Government will introduce new standards to tackle water pollution, protect communities from flooding and make our new towns beautiful.'
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