£10m in fines paid by water firms funds restoration of sewage-polluted waterways

More than £10 million in water company fines has been channelled towards restoring waterways affected by sewage pollution, the Government has said.

Restoring riverbeds in Exmoor National Park and tackling septic tank spills into Windermere are among the 51 projects that have won funding across England.

Some of the projects aimed at cleaning up rivers, lakes and seas across England involve active restoration measures such as restoring floodplains and rewilding, while others involve assessments of water quality and the development of improvement plans.

The money has been ring-fenced from millions paid in fines by five water firms – Anglian Water, South West Water, Thames Water, Yorkshire Water and United Utilities – after causing pollution incidents between April 2022 and October 2023.

It has been issued through the Water Restoration Fund, which was set by the previous Conservative government to ensure fines and penalties levelled at firms went towards the environment rather than being returned to the Treasury.

Environment Secretary Emma Reynolds said: “I share people’s anger at the damage caused by sewage pollution and want communities to once again feel they can take pride in their environment.

“This money from water company fines will be directed back into local projects to tackle pollution and support long-term plans for nature restoration.

“Under our Plan for Change, we’re resetting the water industry – holding water companies to account and reinvesting in areas harmed by their rule breaking.”

One project involves a £1.2 million floodplain and river restoration project on the River Witham in Lincolnshire.

Another will see river restoration work, nutrient capture and wetland creation in the Evenlode catchment in Oxfordshire.

The Environment Department (Defra) said it will continue to direct water company fines and penalties into clean-up projects as it continues a crackdown on the ailing water sector.

It comes as part of its wider response to public outrage over the polluted state of England’s seas, rivers and lakes, as well as rising water bills.

The Government has introduced a series of reforms aimed at overhauling the water industry, including banning bosses’ bonuses, securing greater investment in crumbling infrastructure, and announcing the abolition of regulator Ofwat.

The funding announced on Friday comes from fines of £3,085,000 paid by Anglian Water, £2,150,000 paid by South West Water, £3,334,000 paid by Thames Water, £800,000 from United Utilities and £1,600,750 by Yorkshire Water.

Other projects include converting existing green spaces into a continuous river park along the River Wandle in London, and preventing further deterioration of the Ashfoldside Beck and River Nidd caused by harmful chemicals from contaminated waste mines in Yorkshire.

Another involves removing mini-weirs and culverts to support endangered Atlantic salmon populations in the River Teign and River Taw in the South West.

But James Wallace, chief executive of River Action, said: “Water company bosses must be laughing at this token £10 million fine while they inflict billions of pounds’ worth of environmental damage.

“Yes, polluters should pay to clean up their mess, but penalties must be on a scale that actually hurts and drives change.

“The Water Restoration Fund needs hundreds of millions, not pocket change.”