The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Robbie Moore)
I thank the hon. Member for Easington (Grahame Morris) for securing this important debate and welcome the opportunity to respond to some the points he has made. As we all know, our waterways are a precious resource and their management is something on which this Government have been leading the way, in taking incredibly serious action against those who pollute. In April 2023, the Government introduced our “Plan for Water”, which marks a step change in how we manage our waters. This will deliver more investment, stronger regulation and tougher enforcement to tackle pollution and clean up water. The Government have also set stringent targets to tackle sewage spills, prioritising bathing waters and sites of special scientific interest just like the Durham coast SSSI.
To improve our waterways, the Government are clear that we need to hold to account robustly those who pollute, including our water companies, as customers rightly expect us to do. Yesterday we announced that we are significantly increasing our oversight of the water industry. Every water company should expect their waste water treatment sites to be regularly inspected, which includes unannounced inspections. The number of inspections will rise to 4,000 by the end of March 2025, which is a 370% increase.
Also, on 12 February the Environment Secretary announced that Ofwat will be consulting on banning water bosses receiving bonuses if a water company has committed a serious criminal breach. Ofwat will take forward a consultation to define the criteria for a ban, which could include the prosecution of a category 1 or category 2 pollution incident—such as causing significant pollution at a bathing water site location or a conservation area—or where a water company has been found guilty of a serious management failing. The ban would apply to all executive board members and the chief executive who sits on that board, and we expect it to come into effect later this year. The Government are clear that no one should be rewarded for a serious criminal breach while managing and operating a water company, should that serious breach take place on their watch. This builds on Ofwat’s announcements last year to tighten restrictions on bonuses, using powers given to the regulator through the Environment Act 2021.
Let us be clear: tougher enforcement requires more monitoring. To ensure that robust action is taken, we are holding the water industry to account on a scale that has never been seen before. This Government are driving up monitoring and transparency to ensure that the public can see what is going on, and this starts with monitoring. This Government have achieved 100% monitoring of England’s storm overflows, which is a vast improvement on the just 7% of storm overflows that were monitored under Labour in 2010. This is a major step forward in protecting our precious water bodies as well as the communities and wildlife that rely on them. Meeting this target is a significant achievement in creating positive environmental change and an ability to hold to account the water companies that pollute.
Regarding Northumbrian Water, the water and sewerage company servicing the east Durham area, I am aware that no serious pollution incidents were recorded in 2022 or 2023. However, I am aware that there has been a concerning increase in the number of pollution incidents that have taken place over a longer period. Since January 2015, Northumbrian Water has faced three prosecutions and a total of £807,000 in fines from the Environment Agency. The most recent prosecution followed two consecutive days in March 2017 of raw sewage being released from manhole chambers in Bishop Auckland, which was completely unacceptable. Northumbrian Water is one of six water companies with live cases for potential failures at sewage treatment works that may have led to unpermitted sewage discharges into the environment. I am happy to meet the hon. Member if there are other matters that he wishes to raise.
Grahame Morris
I thank the Minister for his response but, in terms of serious notifiable incidents, there were 184 sewage discharge water alerts in 2023, which is a huge number. I am not sure of the established definition of “serious”, but what is his view of the level of dividends being paid and of the business plans being operated by Northumbrian Water and, presumably, other privatised water companies? They are securitising assets, including Kielder Water, the biggest reservoir in western Europe, and using the proceeds to pay shareholder dividends, rather than to repair infrastructure. What is his view on that?
Robbie Moore
The hon. Gentleman will have noted what I said about wanting to tighten up the bonuses paid not only to chief executives but to executive board members. Earlier this year, the Government announced tighter measures, relating specifically to environmental performance, for Ofwat to be able to challenge dividends.
Last year, to tackle storm overflow discharges, we updated our storm overflow discharge reduction plan, which sets stringent targets to reduce storm overflows. It prioritises action on overflows that discharge into ecologically sensitive sites such as SSSIs, areas of outstanding natural beauty and bathing waters. It will also drive water companies to deliver their largest ever infrastructure programme, an incredible £60 billion over the next 25 years. We are already seeing many water companies accelerating their investment in increasing the assets they oversee.
Moreover, I am aware that there are three designated bathing waters on the County Durham coastline in the hon. Gentleman’s constituency: Seaham Hall, Seaham beach and Crimdon. Substantial improvements have been made to English bathing waters in recent years. Almost 90% of designated bathing waters in England met the highest standards—good or excellent—in 2023, up from 76% in 2010, and that is despite stricter standards being introduced in 2015. These bathing waters are routinely monitored by the Environment Agency during the official bathing water season from May to September.
In 2023, two of the bathing water sites in the hon. Gentleman’s constituency were classified as good, and all met the minimum standard of sufficient. However, I recognise that two had deteriorated from the previous year’s classification. The Environment Agency will investigate the reasons for that deterioration in the region’s bathing water.
We are working closely with Ofwat and the Environment Agency to ensure that they have the tools and resources they need to hold water companies to account. We have provided an extra £2.2 million a year to the Environment Agency specifically for water company enforcement activity. Furthermore, in May 2023 Ofwat announced that its enforcement capacity will be trebled following the Government’s approval of an £11.3 million budget increase.
We have legislated to introduce unlimited penalties for water companies that breach their environmental permits, and to expand the range of offences to which those penalties can be applied. For the avoidance of doubt, this includes criminal.
In our “Plan for Water” we announced the water restoration fund, which will channel environmental fines and penalties collected from the water companies into projects that improve water environment. Further details of the water restoration fund will be announced.
This Government are going further and faster than any Government to protect and enhance the health of our rivers and seas. We expect water companies, including Northumbrian Water, to use the next five-year price review period, PR24, to set bold and ambitious plans to deliver for the people and the environment. That means security of supply, cleaner rivers and beaches, fewer leaks, fewer supply interruptions, greater water resilience—so that we see a fit future for our rivers and coastal environment—and substantial improvements to tackle storm overflows. In turn, this investment will boost economic growth and create more jobs.
Sir Chris Bryant (Rhondda) (Lab)
On a point of order, Madam Deputy Speaker.