Water Companies: Fines

Baroness McIntosh of Pickering Excerpts

Thursday 29th January 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

It is important that the water companies pay the fines in such a way that it does not impact on consumers and consumer bills, and the Government are certainly keen to enforce that.

[Baroness McIntosh of Pickering (Con)]

Can the noble Baroness explain what proportion of the fines paid to date have been used to improve the environment? Will she ensure that these fines can be used to help farmers prevent pollution from agricultural diffusion? At the moment, the sustainable farming incentive is paused, and in any event it does not yet cover agricultural pollution.

[Baroness Hayman of Ullock (Lab)]

We have announced that we are reopening the sustainable farming incentive, and we hope for a good response to it. The important thing to note about the fines is that currently, if they are from Ofwat, they go to Ofwat and then to the Treasury, and if they are EA fines they go straight into the Treasury. It is important that we have an agreement where we hypothecate the fines so that Defra can decide the projects where the fine money will make the biggest difference, and then HMT provides us with the money to do that. That is the important focus.