Water companies in England could face unlimited fines for dumping sewage into rivers and seas under government plans expected to be announced in the coming days. Currently, the maximum penalty is capped at £250,000.
Environment Secretary Thérèse Coffey said the changes would ensure that money from higher fines is taken from company profits, not customers, and channelled into a new Water Restoration Fund. This fund will be managed by the Department for Environment, Food and Rural Affairs (Defra) and used to restore wetlands, create habitats, and manage rivers.
Official figures show an average of 825 sewage spills per day in England in the last year, with a total of 301,081 spills in 2022—a 19% decrease from 2021, largely due to drier weather. The government described the volume as unacceptable.
Coffey also wants the Environment Agency to impose sanctions without going through the courts, though serious cases would still face criminal proceedings. Currently, fines go to the Treasury, but the new plans would redirect them to environmental restoration.
Water UK, representing the industry, said there were “very high levels of compliance” and stressed that investment—£56bn for storm overflows—would be key to improvement. Environmental groups welcomed the uncapping of fines, with River Action’s Charles Watson saying it could provide “real teeth” to deter pollution.
Opposition parties criticised the government. Labour leader Sir Keir Starmer said he was “disgusted” and called for a strong plan to tackle sewage, while the Liberal Democrats said Coffey should resign. The Green Party demanded greater accountability for water companies.
