Unlimited penalties introduced for companies and
individuals who pollute the environment
Penalties offer a rapid form of punishment compared to
prosecution and can now be used for more offences, including
breaches of storm overflow permits
Fines and penalties imposed on water companies will be
invested back into waterways through the Water Restoration Fund
(WRF).
Companies who pollute the environment can be hit with unlimited
financial penalties from the Environment Agency from today
(11th December 2023).
The previous £250,000 cap on Variable Monetary Penalties (VMPs)
has now been scrapped and the range of offences they cover has
been expanded, meaning the Environment Agency has more tools with
which to hold the water industry, and others, to account.
The range of offences that can be punished with a VMP now
include:
- Breach of permit conditions from sites that discharge into
rivers and seas - for example from sewage treatment works and
permitted storm overflows;
- Illegal discharges to water where there is no permit, such as
in the event of agricultural pollution from slurry stores;
- Illegal waste offences, such as from illegal scrapyards or
unpermitted waste management facilities;
- Permit breaches from manufacturing industries and power
stations which contribute to air pollution.
The new unlimited penalties - a measure in the UK Government’s
Plan for Water - form part of work to ensure there is more
investment, stronger regulation and tougher enforcement across
the water system.
The changes, which follow a consultation in Spring 2023, affect
all firms that have environmental permits, including water and
waste companies as well as the agricultural sector and process
industries. Penalties issued will be proportionate to the size of
the company and the nature of the offence, in line with
Sentencing Council guidelines.
Environment Secretary said:
“Polluters should be in no doubt that if they harm our precious
habitats and waterways they will pay.
“By lifting the cap on these sanctions, we are simultaneously
toughening our enforcement tools and expanding where regulators
can use them. These changes will deliver a proportionate
punishment for operators that breach their permits and cause
pollution.
“Through the launch of the Water Restoration Fund, the money
raised from penalties imposed on water companies will go towards
restoring and protecting our waters. This is part of the
increased investment, stronger regulation and tougher enforcement
we are delivering through our Plan for Water.”
VMPs are designed to act as a punishment and deterrent for
breaches of legislation, including environmental permits, and
will be used following a thorough investigation when it is not in
the public interest to prosecute. The most serious breaches of
the law will continue to be subject to criminal proceedings.
Environment Agency Executive Director John Leyland
said:
“These new powers will allow us to deliver more penalties and
help us to continue to hold polluters, including water companies,
to account.
“The threat of uncapped financial penalties should boost
compliance with environmental laws – helping us provide stronger
protection to the environment, communities and nature.”
As well as changes to the VMP system, the Government has recently
taken other measures to hold polluters accountable for
environmental damage. We have given Ofwat increased powers to
ensure water company dividends are linked to environmental
performance while the regulator has also tightened the rules on
bonus payments. For 2022-23, no water company bosses in England
are paying a CEO bonus out of customer money.
The funds raised from water company penalties will be reinvested
in a new Water Restoration Fund, designed to provide direct
investment for projects that work to improve our rivers, lakes
and streams at a local level.
ENDS
Notes to editors
- To note, VMPs are regulator-imposed civil financial penalties
and those responsible do not get a criminal record. Civil
penalties are distinct from fines, which can only be imposed by
the criminal courts.
