The UK Government is seeking to make it more difficult for water companies to escape liability for the spillage of raw sewage.
The Water (Special Measures) Act has already sought to hold water companies to account more often, but the Government is seemingly not done yet.
There are more proposals that have been put forward and need to be understood.
Automatic fines for minor offences
The UK government proposes automatic fines of up to £20,000 for minor breaches.
These include:
- Failure to report pollution incidents within four hours.
- Improper reporting of spill data.
- Emergency overflow outlets discharging sewage more than three times a year.
These fines aim to streamline enforcement and reduce reliance on lengthy investigations.
Automatic fines will represent a significant change and encourage more diligent, proactive practice, rather than seeking to defer liability at a later stage.
Civil vs. Criminal burden of proof:
For more serious offences, the government wants to lower the burden of proof from “beyond a reasonable doubt” (criminal standard) to “on the balance of probabilities” (civil standard) – in other words, more likely than not.
This change is intended to make it easier for the Environment Agency (EA) to take action without needing full criminal prosecution.
Increased civil penalties
The EA could impose fines up to £500,000 without going to court.
This is a significant increase from current limits and is already enabled by the Water (Special Measures) Act, which received Royal Assent in February 2025.
Criminal prosecution still applies for major offences:
For the most serious pollution cases, the EA must still pursue criminal prosecution.
The increased civil penalties, therefore, are to present an alternative and increase the options available, rather than a complete overhaul.
Convictions can result in multi-million-pound fines, as seen in past cases (e.g., Thames Water fined £3.3 million).
Consultation period
A six-week public consultation will determine which offences qualify for automatic or civil penalties and the appropriate levels of fines.
Financial Accountability
Fines will be paid by shareholders, not passed on to customers via water bills.
This is something that the public will feel strongly about, given the recent and ongoing cost-of-living crisis.
Direct accountability for the shareholders, rather than the companies passing on the fines, should incentivise shareholders to install more rigorous practices.
At Dyne Solicitors, we specialise in Environmental Disputes. We offer advice and representation for regulatory, commercial and property litigation in the environmental and waste sectors. For more information, contact Alex Sandland or Patrik Jones-Wright.