In a major policy shift aimed at tackling illegal sewage discharges, water company executives in England and Wales could now face prison sentences of up to two years under new government powers that came into force this week.
The new legal measures target senior water firm bosses who obstruct or fail to cooperate with investigations into sewage spills. The UK government said the threat of imprisonment would act as a “powerful deterrent” and address long-standing failures in accountability across the water industry.
The announcement coincided with a scathing report from the National Audit Office (NAO), which criticised the Department for Environment, Food and Rural Affairs (Defra), along with regulators Ofwat, the Environment Agency, and the Drinking Water Inspectorate, for failing to manage risk and drive investment in the water sector. The NAO found consumer trust in the industry was at an “all-time low.”
The watchdog’s report said water firms had prioritised shareholder dividends and executive bonuses over essential upgrades to aging infrastructure, leading to a rise in pollution incidents and higher bills for customers. “Regulatory failure and corporate greed” have left households paying the price, according to critics.
Environment Secretary Steve Reed acknowledged the gravity of the situation in an interview with the BBC’s Today programme. “It’s shocking that not a single water executive faced a fine, let alone a prison sentence, despite widespread law-breaking,” Reed said. “Regulation has been weak and toothless. That changes today.”
The government argues that in previous years, some water companies failed to hand over key evidence during pollution investigations, hampering efforts to hold offenders accountable. The new powers, it says, will give regulators the tools needed to compel cooperation and enforce the law.
Campaign group River Action welcomed the announcement but warned that legislation alone would not be enough. “Without delivering actual prison sentences, it’s just theatre,” said James Wallace, the group’s chief executive. “If the government is serious, let’s see real jail time, not just headlines.”
River Action also reiterated calls for a fundamental review of water sector privatisation, describing it as a “failed experiment” that had led to years of underinvestment and environmental degradation.
Water UK, the industry’s representative body, said it supported greater accountability and was committed to delivering long-term improvements, including new investments to stop sewage spills and ensure reliable water supplies.
However, the group also urged the government to provide “clearer direction,” simplify regulation, and devolve more decisions to local communities.
Earlier this week, Water UK stated that companies should no longer be responsible for monitoring their own sewage pollution levels, citing a need for a “more robust” third-party system. At present, firms conduct their own sampling—a practice that has led to multiple incidents of misreporting, which regulators say may have been intentional in some cases.
An independent commission has been established to review the regulation of the water sector, with its findings expected by July. In the meantime, public pressure continues to mount on both regulators and water companies to clean up their act—literally and figuratively.
