Defra announces £100m water company fines to fund environmental clean-up projects
The Department for Environment, Food & Rural Affairs (Defra) has announced that over £100m in water company fines and penalties collected since October 2023 will be reinvested into local environmental projects to improve water quality. The announcement comes as part of the government's broader water sector reform agenda, which includes an independent review of the regulatory system led by Sir Jon Cunliffe. Under this initiative, water companies that breach their environmental permits by releasing excessive pollution or committing illegal sewage spills, will face criminal prosecution, with detailed project funding information to be provided at a later date. Defra reports that 81 criminal investigations have been launched into water companies under the current administration. This investment is a key component of the government’s ‘Plan for Change’, which also includes increased enforcement, a record investment in infrastructure improvements and a generational review of the sector.