Water Companies: Fines

Lord Pannick Excerpts

Thursday 29th January 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I politely suggest to my noble friend that we do not indulge criminal organisations. We put in payment plans because it would not help a water company if we forced it to pay fines so that it went bust. I do not think that would help consumers at all. So we need to bring in sensible payment plans which ensure that we get the money back, but we are also bringing in tough, swift penalties to clamp down further on water companies. For example, we have increased enforcement powers to the regulators, we have given existing regulators the teeth they need to take tougher action against water companies, and the Environment Agency can now impose automatic penalties, and penalties to the lower civil standard of proof. We are looking to clamp down heavily on offenders.

[Lord Pannick (CB)]

Can the Minister say whether the directors are paying these fines, as opposed to the consumers, and if not, why not?

[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.