£4.6m: Severn Trent pays out record sum to settle pollution cases

Local communities, water quality and wildlife will benefit from a record £8.5m paid by water companies into environmental restoration projects as part of a strengthened crackdown on pollution and poor performance across the sector.

This compares to £5.8m the year before, a 47 per cent increase, and just under £2m in the 2023-24 financial year.

Enforcement Undertakings are legally binding agreements between the Environment Agency and companies that have breached environmental rules. The undertaking requires the company concerned to take steps to prevent repetition of the offending and to put right the damage it has caused.

Severn Trent has been hit with the largest payment demand at £4,627,424, all of which was directed to local charities including the Trent Rivers Trust and Gloucestershire Wildlife Trust, who have the expertise to deliver targeted improvements in the affected catchments through measures such as habitat restoration, barrier removal and water quality improvements.

The Environment Agency ensures this record funding goes directly to charities and projects that restore the harm done to waterways and improve water quality, working to leave them in a better position than before any incident.

The funding supports a wide range of local environmental improvements, including habitat restoration and river recovery projects.

This will help rebuild habitats for threatened species like water voles and salmon that pollution has driven from Britain's waterways.

Often this will involve a payment to a third-party wildlife trust or environmental charit, has has been the case with Severn Trent.

This money can help deliver immediate benefits to the environment, without requiring lengthy and uncertain court proceedings – complementing the Environment Agency’s wider enforcement action against serial offenders.

Emma Hardy MP (Lab), water minister, said: “Water companies must be held to account when they break the law.

“This enforcement action will see millions go directly into projects that clean up our rivers, restore habitats and benefit local communities, delivering immediate benefits without lengthy court cases.

“It comes alongside other government action to clean up our rivers, lakes and seas.

"We’ve already banned unfair bonuses and introduced landmark legislation to hold water companies to account, and our long-term reforms will mean there is a new, single regulator focused on preventing problems before they occur.”

Philip Duffy, chief executive of the Environment Agency, said: “This record level of Enforcement Undertakings payments means more money is being reinvested directly into restoring the environment.

“While we continue to prosecute and sanction the most serious offences, Enforcement Undertakings allow us to hold companies to account more quickly while ensuring money is channelled directly to where damage has occurred, delivering real benefits for people and wildlife.”

The Government has also introduced stronger powers through the Water (Special Measures) Act, including tougher penalties and new measures to ensure regulators can act more quickly and effectively.

A Severn Trent spokesperson said: “Our focus is always on preventing pollutions before they happen, but when things do go wrong, we act quickly, take ownership and put things right.

"This funding supports organisations like the Rivers Trust to make a difference, while we continue to invest billions in our network to build resilience for the long term.”