The UK Government has announced plans to channel over £100 million from water company fines into local projects aimed at cleaning up the country’s rivers, lakes, and coastal waters.

These funds come from fines and penalties imposed on water companies since October 2023, with future penalties also set to support environmental improvements. The money will go toward initiatives such as tackling pollution and improving water quality in local communities.

Water companies that violate environmental regulations—such as by discharging illegal levels of sewage—can face criminal prosecution and heavy fines. In serious cases, senior executives may also be held personally accountable.

To date, a record 81 criminal investigations have been launched into water companies under the current Government, in a crackdown led by Environment Secretary Steve Reed.

The Government has stated that the scale of sewage pollution in the UK’s waters is unacceptable. To address this, an independent review of water sector regulation is underway, led by Sir Jon Cunliffe. The aim is to overhaul the system and ensure fair outcomes for both consumers and investors.

As part of its broader Plan for Change, the Government is committed to stricter enforcement, major investment in infrastructure, and long-term reform to restore the health of the UK’s waterways.

Secretary of State 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. A record 81 criminal investigations have been launched into water companies under this government and Ofwat recently announced the largest fine ever handed to a water company in history. 

This Government will invest money collected through fines into local projects to clean up our rivers, lakes and seas for good”. Photo by Heath Alseike, Wikimedia commons.