The recently released ‘plan for water’, produced by Defra (The Department for Environment, Food and Rural Affairs) and signed off by industry regulator Ofwat, seeks to deliver a healthy water environment and a sustainable supply of water for people and businesses. Amongst the plans are new requirements for water companies to accelerate the delivery of projects which will improve the water system. This includes £1.6 billion in investment, which will drive new water company infrastructure delivery to start in the next two years[i], the aim of which will be to reduce the number of spills from storm overflows, limit nutrient pollution, and increase the nation’s water supply. The plan also details a new Water Restoration Fund, which will be used to channel environmental fines and penalties into projects which improve the water environment- for example, the removal of disused water modifications such as weirs which are no longer needed to instead restore natural processes- for example improving ecology and returning water courses to their natural state.
Action is necessary given the National Infrastructure Commission findings that an additional 4 billion litres per day (+29%) will be needed in England by 2050; at present, around 14 billion litres are delivered each day. The changes also factor into the recent commitments made in January’s Environmental Improvement Plan (EIP23), where the government pledged to protect 30% of land for nature by 2030, with the restoration of the water system forming a fundamental part of achieving this[ii].
The 2030 target means that new projects will need to be accelerated, with construction starting in 2025 and finishing no later than 2030. Edie.net reports that a total of 31 projects will see acceleration as a result of the ‘plan for water’: “These include £1.1bn of projects to reduce storm overflows and £160m of projects to reduce nutrient pollution resulting from sectors including agriculture and construction. Ofwat is also assessing a further 37 smaller schemes, collectively costed at £376m, for potential acceleration.”[iii]
The issue of sewage pollution has been greatly publicised and debated in recent months, with the latest data from the Environment Agency showing that sewage was released into England’s waterways more than 300,000 times in 2022 alone. Water minister Rebecca Pow recently commented: “The volume of sewage being discharged into our waters is unacceptable, and we are taking action to make sure polluters are held to account.”[iv]
However, as the Financial Times recently reported[v], regulator Ofwat has only given one fine for breaches in wastewater regulations since they came in almost 30 years ago. This is despite the hundreds of sewage spills into rivers and coastal areas. Ofwat’s only fine was imposed on Southern Water in 2019, with the company receiving the equivalent of £126 million in penalties for breaking the regulations. Nick Measham, chief executive of the campaign group WildFish commented: “The bottom line is that Ofwat as a regulator has been absent from a critically important part of its duty”. He added that it must do more “to enforce the existing legislation.”[vi]
To attempt to tackle the highly damaging effect of sewage pollution, the Plan for Water includes several measures to reduce the number and scale of breaches each year. Firstly, the Environment Agency will see an additional £2.2 million added to their budget each year to help with enforcement capacity; alongside this, regulators are also undertaking the largest investigation in history into water company compliance with environmental law. Further, changes to the Environment Act 2021 will provide Ofwat with new powers to change water company licence conditions without consent and link water company dividend payments to environmental performance. Lastly, and perhaps the biggest announcement, is that the law will be changed to allow the Environment Agency to penalise water companies for damaging the environment, with the government seeking ‘unlimited penalties’ as their preferred form of punishment for polluting waterways.
At the Plan for Water launch, Secretary of State Thérèse Coffey said: “I completely understand the concerns that people have about the health and resilience of our waters, which is why I am setting out this plan for a truly national effort to protect and improve them. That includes higher penalties taken from water company profits which will be channelled back into the rivers, lakes and streams where it is needed. This is not straightforward, but I take this issue extremely seriously and things need to change. That’s why we have developed this plan and we are committed to delivering the progress that people want to see.”[vii]
Environment Agency chair Alan Lovell welcomed the announcements: “I am pleased to see today’s consultation on enabling the Environment Agency to levy much larger penalties for pollution alongside the criminal fines we seek in the courts. Nature must be supported, and the polluter must pay. These new measures will help us hold the water industry and others to account.”[viii]
Also included in the Plan for Water are major changes for the agriculture sector, an industry which depends heavily on a consistent and reliable water supply. However, it also faces challenges in its contribution to water pollution- for example, with pesticide use. Announced in the government’s plan are the following:
Notably, Defra is opening a second round of the Water Management Grant which will help farmers invest in on-farm reservoirs and irrigation equipment. In addition, the Department has set a target to increase the amount of water stored by the agriculture and horticulture sectors by 66% by 2050 to help protect food production even in times of drought.
Deputy President of the NFU, Tom Bradshaw, has said: “Increased funding for the Slurry Infrastructure Grant is welcome and will help farmers to continue to best manage this valuable resource. Funding for the Water Management Grant is also essential to help farmers to secure water supplies for food production. However more needs to be done to help restore the confidence. Currently the industry isn’t guaranteed access to water to fill winter storage reservoirs, and this needs to be addressed urgently.” he added: “We look forward to hearing more about the funding and support for river catchment partnerships. Particularly where these can be farmer-led and integrated to address water resources, flood management and water quality.”[x]
[i] Our Integrated Plan for Delivering Clean and Plentiful Water (publishing.service.gov.uk)
[ii] Ambitious roadmap for a cleaner, greener country - GOV.UK (www.gov.uk)
[iii] Plan for Water: Defra touts unlimited fines for polluting water companies - edie
[iv] PressReader.com - Digital Newspaper & Magazine Subscriptions
[v] Ofwat has fined just one water company over 1994 sewage spill rules | Financial Times (ft.com)
[vi] Ibid
[vii] New plan for cleaner and more plentiful water - GOV.UK (www.gov.uk)
[viii] New plan for cleaner and more plentiful water - GOV.UK (www.gov.uk)
[ix] New Defra plan offers additional water investment for farmers – NFUonline
[x] New Defra plan offers additional water investment for farmers – NFUonline
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
