In a decisive move to tackle pollution in Britain’s waterways, the UK government has passed the Water (Special Measures) Act 2025, marking the most significant crackdown on environmental violations by water companies in over a decade. The law, which received Royal Assent on February 24, introduces sweeping reforms, including a ban on executive bonuses for companies that fail to meet environmental standards.
Speaking on the passage of the Act, Environment Secretary Steve Reed said, “We promised to put water companies under tough special measures to clean up our waterways. Today, the Government has delivered on that promise as we continue to deliver on our Plan for Change. Polluting water bosses will no longer be paid undeserved bonuses. And if they break the law over water pollution, they could end up in the dock and face prison time. This is just the beginning.”
The new legislation empowers regulators, notably Ofwat and the Environment Agency, to enforce higher environmental standards. The reforms include:
- Stronger enforcement powers: The Environment Agency can now bring criminal charges against executives who obstruct pollution investigations, with potential imprisonment.
- Ban on executive bonuses: Ofwat will have the power to set rules prohibiting water company executives from receiving bonuses if their companies fail to meet environmental, financial, and customer service standards.
- Automatic penalties: Regulators can impose penalties more quickly for pollution incidents, without redirecting resources to lengthy investigations.
- Independent monitoring: All emergency sewage outlets will be independently monitored, with real-time public data published within an hour of any discharge.
- Pollution Incident Reduction Plans (PIRPs): Companies must annually publish progress reports on reducing pollution.
Environmental leaders and regulatory officials welcomed the Act as a critical step toward restoring public trust and environmental integrity.
Alan Lovell, Chair of the Environment Agency, highlighted the importance of the reforms: “The passing into law of the Water (Special Measures) Act is a crucial step in making sure water companies take full responsibility for their impact on the environment. These increased regulatory powers will allow us to close the justice gap, deliver swifter enforcement action, and ultimately deter illegal activity.”
Representing the regulatory authority, Helen Campbell, Ofwat’s Senior Director for Sector Performance, underscored the need for cultural change within the industry. “This Act gives Ofwat new powers to set requirements for companies on remuneration and governance, including prohibiting performance-related executive pay. These rules are an important step towards rebuilding public trust within the water sector, while also prompting water companies to focus on delivering a change in their culture that better meets the expectations of their customers.”
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), remarked, “Repairing people’s fractured trust in the water sector requires not only a vast improvement in environmental performance, but also a sea change in water company culture so customers’ priorities are put before profit.”
The passage of the Act aligns with broader government plans for long-term sector reform, guided by the Independent Water Commission launched in October 2024. The commission’s findings, due later this year, will inform future legislation aimed at comprehensive water system transformation.
Steve Reed emphasized the long-term vision: “This is just the beginning. The Independent Water Commission will report back later this year to shape new laws that will transform our water system so we can clean up our rivers, lakes, and seas for good.”
As public scrutiny intensifies and environmental concerns grow, the Water (Special Measures) Act 2025 signals a robust shift in holding water companies accountable, ensuring cleaner waterways for future generations.
