New laws which came into force on 25 April mark the toughest sentencing powers against law-breaking water executives in history.
The new powers, delivered by the Water (Special Measures) Act 2025, mean water executives who cover up or hide illegal sewage spills could face up to two years in prison.
Since privatisation, no prison sentences have been handed to water executives despite widespread illegal sewage discharges into rivers, lakes, and seas. These new, tougher penalties are essential because some water companies have obstructed investigations, failing to hand over vital evidence of illegal sewage discharges. This has prevented crackdowns against law-breaking water companies.
The new measures deliver on the government's promise to bring tougher criminal charges against lawbreakers in the water industry. As part of the government's Plan for Change, the threat of imprisonment will act as a powerful deterrent as water companies invest in upgrading broken water infrastructure and clean up our rivers, lakes and seas for good.
Environment Secretary, Steve Reed, said: "Bosses must face consequences if they commit crimes. There must be accountability".
"From today, there will be no more hiding places".
In addition, new powers will mean that the polluters will pay for the cost of criminal investigations into wrongdoing. Authorities will now recover the costs of their enforcement activity, with the Environment Agency currently consulting on how they will use the powers.
The payment of bonuses to water bosses will also be banned if they fail to meet high standards to protect the environment, their consumers and the company's finances.
Chief Executive of the Environment Agency, Philip Duffy, said: "The Water (Special Measures) Act was a crucial step in making sure water companies take full responsibility for their impact on the environment".
"The tougher powers we have gained through this legislation will allow us, as the regulator, to close the justice gap, deliver swifter enforcement action and ultimately deter illegal activity".
"Alongside this, we’re modernising and expanding our approach to water company inspections - and it’s working. More people, powers, better data and inspections are yielding vital evidence so that we can reduce sewage pollution, hold water companies to account and protect the environment".
The government will continue to reform the water sector in order to clean up our rivers, lakes and seas once and for all, and £104 billion of private sector investment has been secured to upgrade and build new water infrastructure across the country:
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