PARLIAMENTARY DEBATE
Water Company Fines: Water Restoration Fund - 19 June 2025 (Commons/Commons Chamber)
Debate Detail
Contributions from Perran Moon, are highlighted with a yellow border.
Caroline Voaden
South Devon
09:45:00
Emma Hardy
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs
This Labour Government have launched the largest ever crackdown against poorly behaving water companies. As part of this operation, Ofwat has hit Thames Water with a £100 million fine, which is the biggest in British history. I am delighted to confirm today that fines collected by regulators will be directly invested in projects, led by communities up and down the country, to clean up our rivers, lakes and seas.
Caroline Voaden
I thank the Minister for her answer on the water restoration fund, but it would be good to know when it will come back into action. A Liberal Democrat freedom of information request found that Ofwat has failed to force water companies to pay any fines for sewage discharge cases since 2021, despite sewage being pumped into waterways for over 3.6 million hours last year alone. Meanwhile, water company bosses earned a collective total of £20 million in the 2023-24 financial year. The water restoration fund provided valuable funds to local communities to improve water quality and river health. When will the Government stand up to the water companies, make them pay for the damage they are inflicting on our environment, and ringfence this money for communities, so that they can protect and improve their waterways?
Emma Hardy
I thank the hon. Lady, but with respect, the response was in my original answer. As I confirmed, the water restoration fund is continuing as planned. Successful projects have been notified, and money has been announced and given. As I have stated, all the money collected from water fines will be diverted into nature projects to help clean up our rivers, lakes and seas across the country—and yes, that money will be ringfenced.
Perran Moon
Camborne and Redruth
The interim Cunliffe report on the water sector has highlighted weak, disjointed and reactive regulation by various regulators. If the commission’s final findings confirm the assessment of the regulators, can the Minister confirm that she will act swiftly and decisively to reform regulation of our water companies?
Emma Hardy
My hon. Friend is right to highlight the important work that the commission has been doing. I do not want to get ahead of any announcements the commission may make—it is not long to wait now, Mr Speaker; it is only a few weeks—but clearly regulation has not been working, so action is needed.
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