The largest ever budget for tackling water pollution has been handed 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 (EA), which is responsible for inspecting and prosecuting water companies 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, 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. This means that the polluter will pay the cost of regulating the sector, not taxpayers.

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 and clean up our rivers, lakes and seas for good – all part of the Government’s Plan for Change.

The EA has agreed to deliver tough efficiency targets as part of the spending review, to ensure that this money is targeted at frontline delivery and enforcement. Already, the EA has driven 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.