Water pollution fines are to be ring-fenced for environmental restoration works, under new plans from Treasury and Defra.
At present, money from fines imposed on water companies by Ofwat and the Environment Agency is returned to the Treasury. Under the new plans, these funds will go to Defra and be invested directly back into environmental and water quality improvement projects, such as wetland creation, re-vegetating river banks and reconnecting meanders to the main channel of rivers.
Water minister, Rebecca Pow, said: “The volume of sewage being discharged into our waters is unacceptable, and can cause significant harm to our wildlife and sensitive habitats. It is right that water companies are made to pay when they break the rules, but it is also right that this money is then channelled back into improving water quality.
“Water company fines reached a record level last year, and moving forward these plans will significantly increase funding that will be used to recover, protect and enhance our natural environment.”
Since 2015, the Environment Agency has concluded 56 prosecutions against water and sewerage companies, securing fines of over £141m. The amounts from fines look set to rise going forwards, given government plans to expand the use of, and raise the cap on, the civil Variable Monetary Payments that the Environment Agency can issue, meaning sanctions can be imposed more often without lengthy and costly court cases.
The EA and Ofwat are also currently carrying out the largest criminal and civil investigations into water company sewage discharges ever, at over 2200 treatment works.
Further details on the plans will follow next year.
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