Water fines to be ring-fenced for local watercourse improvements

The Government has given the go-ahead for water company fines to be invested in local water remediation projects, rather than being sent to the Treasury.

The idea originated with the previous government’s Water Restoration Fund, but until now the current government had not confirmed the destination of penalty payments beyond the £11m agreed last year for local projects.

Now, over £100m in fines and penalties levied against water companies since October 2023, as well as future fines and penalties, will be reinvested into projects to clean up waterways, for example to address pollution and improve water quality.

Chief executive of The Rivers Trust, Mark Lloyd, said the news was very welcome and followed long calls from the environmental community. “We eagerly await the detail that the Government has promised on how exactly the money will reach those who need it most and deliver the best environmental improvements on the ground. We also want confirmation that all future fines and penalties will be ring-fenced for environmental projects, including fines levied against polluters from other industries, to restore the damage done to the environment. Polluters should be paying a contribution to the costs of fixing our rivers, rather than their fines disappearing into the Treasury, never to be seen again.”