Millions of pounds collected from fines on water companies will now fund projects to clean up polluted rivers. This move comes after concerns that the money would go to the Treasury instead.
The government created the Water Restoration Fund to hold polluting firms accountable. Between April 2022 and October 2023, the fund received £11 million from fines and penalties. In January, reports suggested the Treasury wanted to keep the money meant for river restoration. However, the government confirmed that the funds will go toward environmental projects.
Various river trusts have submitted proposals to improve and monitor waterways. The River Derwent in Derbyshire and the River Waveney on the Norfolk-Suffolk border are among the areas set to benefit. Successful applicants will receive approval on Monday, and projects will start this year. These efforts will clean up polluted rivers in the same areas where companies were fined.
Environment Secretary Steve Reed stressed the urgency of action. He stated that after years of neglect, the country’s waterways have become heavily polluted. He declared that the “sewage scandal ends now” and emphasized strict measures to hold water firms accountable.
The recently passed Water (Special Measures) Act introduces tougher regulations. It gives the government power to ban bonuses for polluting executives and bring criminal charges against lawbreakers. Water companies must now install monitoring devices at every sewage outlet. Independent regulators will review the collected data.
Environmental groups pushed for an amendment to ensure future fines always fund river restoration. However, the bill did not include this change. Activists continue to challenge the government on how future penalties will be used.
Charles Watson, chair of River Action, welcomed the funding but criticized its scale. He pointed out that £11 million is small compared to the billions paid in dividends. Despite this, he acknowledged that any funding to clean up polluted rivers is a step in the right direction.
Meanwhile, an independent commission is reviewing the entire water industry. This is the largest assessment since privatization. The government believes this review will help shape future laws, boost investment, and clean up polluted rivers.
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