Millions of pounds collected from water companies that breached environmental rules are being redirected into the restoration of England’s rivers, lakes and coastal waters, with local
communities and environmental groups taking the lead.
The government has announced that £29 million from water company fines will be reinvested into more than 100 local environmental projects. Together, these schemes are expected to improve around 450 kilometres of rivers, restore 650 acres of natural habitat and see the planting of 100,000 new trees.
A central part of the funding package is a major boost for catchment partnerships – community-led groups that work with landowners, charities and authorities to improve waterways at a local level. Their funding will be doubled to £1.7 million a year for the next two years, reinforcing the government’s pledge to give communities a stronger voice in water management and environmental decision-making.
The investment will also support wider initiatives, including the Water and Abandoned Metal Mines Programme and the Water Environment Improvement Fund. These programmes focus on restoring habitats, improving water quality and tackling pollution at its source. Officials say the public funding is expected to unlock at least a further £11 million in private sector investment.
Water Minister Emma Hardy said: “We are taking decisive action to fix our water industry by holding companies to account. We’re making them pay and putting the money back into restoring our rivers, lakes and seas.
We’ve already introduced powers which blocked bonuses for polluting water executives and secured £104 billion to fix crumbling infrastructure.
Now we’re backing local communities, who know their waterways best, by doubling the funding they receive. This is a key part of our Water White Paper which sets out a long-term vision to shift from clearing up pollution to preventing it in the first place”.
She added that the approach aligns with the government’s forthcoming Water White Paper, which sets out a long-term plan to move away from simply cleaning up pollution and towards preventing it in the first place.
The funding announcement comes as ministers unveil what they describe as a once-in-a-generation overhaul of Britain’s water system. At the heart of the reforms is a shift towards reformed regional planning, designed to empower local people and organisations to lead recovery efforts in their own areas.
A new Regional Water Planning Steering Group will be established in 2026, bringing together councils, water companies, farmers and developers. The group will test a more joined-up, locally driven approach to tackling river pollution, managing water resources and accommodating housing growth, before a wider rollout from 2027.
These changes will be supported by plans for a single water regulator, aimed at providing clearer oversight of the sector and a stronger focus on preventing environmental damage before it occurs.
The expanded funding for catchment partnerships builds on a number of successful projects already underway across the country. In Cumbria, work along the River Petteril saw farmers collaborate with United Utilities, Natural England, Network Rail and the Eden Rivers Trust to cut phosphate levels, improving water quality, boosting biodiversity and reducing flood risk.
In Northamptonshire, the Nene Valley Catchment Partnership has helped transform Foot Meadow Island, a neglected green space near the Northampton Enterprise Zone. Once associated with antisocial behaviour, the area is being reshaped through community involvement into a valued local asset, improving habitats along the River Nene while fostering a sense of local ownership.
Meanwhile, in Somerset’s Porlock Vale, the Environment Agency, National Trust and local farmers have delivered large-scale, nature-based solutions to flooding and climate resilience. Around 10 kilometres of river have been restored and reconnected to their floodplains, cutting flood peaks by 38%. The introduction of two beaver families has further enhanced wet woodland habitats, with the project attracting £3 million in match funding from an initial £500,000 investment.
The Water White Paper, ministers say, represents a turning point for the sector, with a renewed focus on clean water, fairer bills and sustained long-term investment in infrastructure – all while putting communities at the centre of environmental recovery. Photo by G-Man, Wikimedia commons.