Last week, the UK government passed major legislation aimed at tackling on UK water pollution.
The Water (Special Measures) Act 2025 marks the most significant increase in water pollution enforcement powers in a decade and gives regulators new powers to take tougher and faster action to crack down on water companies damaging the aquatic environment. These powers include:
- Enhanced enforcement powers: The Environment Agency will have increased ability to bring criminal charges against water bosses who break the law, who could face tougher penalties such as imprisonment of executives when companies fail to cooperate or obstruct investigations
- Ban on bonuses: Ofwat will have the power to set rules prohibiting the payment of executive bonuses if companies fail to meet high standards in protecting the environment, their consumers, and financial resilience.
- Automatic penalties: These will be introduced for a range of offences, allowing regulators to issue penalties more quickly without redirecting resources to lengthy investigations.
- Independent monitoring: Every emergency sewage outlet will be monitored, with data independently scrutinised and made publicly available within an hour of sewage spills occurring. This will ensure transparency and direct further investment to improve sewage infrastructure.
- Pollution Incident Reduction Plans (PIRPs): Water companies in England will be required to publish annual Pollution Incident Reduction Plans and report regularly on their progress, enabling the public and regulators to hold companies accountable for reducing pollution incidents.
But what does this mean for businesses?
The legislation currently only applies to water utilities companies, so unless you're working in one, there isn't any major impact. This said, the Act sets a new precedent for the type of policy mechanisms the Government can implement to force businesses to take responsibilities for their environmental externalities.
This is especially true for agricultural businesses, which are the greatest point source of water pollution in the UK - accounting for 45%. If actions like the class action lawsuit being brought against the Cargill UK Poultry group in the River Wye catchment is successful, then perhaps agricultural players could find themselves subject to more stringent water legislation.
However, from our perspective, the most useful takeaway from this Act, for a wider business audience, are the examples of mechanisms corporates could implement voluntarily to support their sustainability strategy, or as actions against ESRS 2&3 of a CSRD disclosure or as part of the Water Stewardship Strategy for the new B Corp certification.
These mechanisms include:
- Environmental protection-linked bonuses
- Independent monitoring of wastewater pollution
- Public publishing of ‘Pollution Incident Reduction Plans’
Either way, the Water (Special Measures) Act 2025 is a landmark moment in the fight to improve UK water quality and one we should celebrate.
If you’re interested in learning more about how your business can reduce its impacts on waterways and implement better water stewardship practices, why not get in touch? hello@bemari.co.uk
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