The Department for Environment is going to pour finances into environmental schemes set out for the protection of the country’s waterways. This comes after there were concerns regarding the direction of the funds. This decision was made to ensure that the funds collected don’t end up in Treasury where they would essentially be of no use.

The scheme was made by the Conservative government to make sure that damaging water firms pay for their actions. Since April of 2022 to October 2023, the program has received £11m in fines and penalties.

However, it was reported in January, that the Treasury was also seeking to keep some of these funds aside for its operations. River trusts have already submitted bids to improve the health of several rivers, including the River Derwent in Derbyshire and the River Waveney, which is situated at the border of Norfolk-Suffolk.

Applicants to the fund will be notified on Monday, with projects to initiate this year. The main focus of the fund will be on enhancing the condition of the water environment in areas where fines and penalties were issued to water companies.

Environment Secretary Steve Reed said, “After years of rivers, lakes, and seas getting completely saturated with pollution, it’s time to clean things up. The problem with water pollution ends here.

“Our Government has already opened up strict regulatory measures against failing water companies through the Water Act. With provisions to ban the payment of bonuses for water bosses found responsible for polluting water and to criminally charge those who disregard the law. This week we are taking it further, by investing millions into cleaning up our rivers, lakes and seas using finances collected from fines from these water companies.”

The Government’s decision to fund cleanup projects follows the passage of the Water (Special Measures) Act last month. The Act is intended to keep water companies accountable, with stronger regulation that could see water bosses personally criminally liable for violating the law. Companies will be required to install monitors at all sewage outlets, with data to be independently scrutinised by regulators.

Environmental campaigners wanted an amendment in the new bill to ensure all future fines imposed on water firms would be ringfenced for restoration projects. However, the amendment was not included in the new bill and ministers have been repeatedly challenged over how future criminal fines and civil penalties will be used.

Charles Watson, chair of the charity River Action, said any funds for restoration are welcome but £11m is a small amount compared with the billions of pounds paid out in dividends. He said: “We are grateful for any funds given to local communities to restore rivers, but the money in this fund is just a fraction compared to how shareholders and lenders have been paid out by the water companies.”

An independent commission into the water sector is conducting the largest review of the industry since privatisation. This, according to ministers, will help shape further laws to attract the investment needed to clean up our waterways and restore public confidence in the sector.