New analysis has revealed the largest budget for the Environment Agency’s water regulation in history – the massive cash injection comes through charges on water companies (not from taxpayers) via the Water (Special Measures) Act which introduces new levies to pay for water company enforcement activities
The largest ever budget for tackling water pollution has been given to the country’s water watchdog, as part of the government’s plan to deliver the most significant increase in enforcement powers in a decade.
The Environment Agency, who are in charge of water company inspections and prosecutions for environmental damage, will receive a cash injection of over £189 million this financial year. This will fund more enforcement officers, improved equipment and the latest technology for the regulator.
This year alone the Agency it will carry out more than 10,000 inspections of water company assets and has already launched a record 81 criminal investigations into water company pollution incidents since July 2024.
Funding has increased by 64% since 2023/2024, with all of this increase coming from charges paid by water companies rather than from the public purse.
Environment Secretary Steve Reed said:
“The public are furious about sewage pollution in our rivers, lakes and seas.
“This government is cleaning them up, including the biggest boost to enforcement in a decade paid for by the water companies responsible for it.
“Our changes give the water watchdog the resources they need to tackle pollution–increasing funding by 64%. We’re cleaning up our rivers, lakes and seas for good – all part of the Government’s Plan for Change.”
The Environment Agency has agreed to deliver tough efficiency targets over as part of the spending review, to ensure that the money is targeted on frontline delivery and enforcement. The EA has already achieved efficiency savings of over £23 million during 2024/25.
As a further boost, a new levy on the water sector, which is subject to consultation, will allow the EA to recover the cost of their enforcement activities in the sector - a power granted through the landmark Water (Special Measures) Act, making it easier for the regulator to take enforcement action when needed.
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