To ask His Majesty's Government what penalties will be imposed on local authorities that do not comply with Simpler Recycling requirements; and when and how they plan to report on rates of compliance.

To ask His Majesty's Government what penalties will be imposed on local authorities that do not comply with Simpler Recycling requirements; and when and how they plan to report on rates of compliance.

My Lords, Ofwat has imposed fines to the value of £122.7 million on Thames Water. There is a payment plan in place, with the first 20%—that is, £24.5 million—paid last year. The remaining 80% is due by 31 March 2030 at the latest. Fines following EA enforcement action total £4.6 million, and we are not aware of any unpaid fines. Fines are only part of the enforcement toolkit, however, with over £164.6 million of enforcement undertakings announced over the same period.

My Lords, Ofwat has imposed fines to the value of £122.7 million on Thames Water. There is a payment plan in place, with the first 20%—that is, £24.5 million—paid last year. The remaining 80% is due by 31 March 2030 at the latest. Fines following EA enforcement action total £4.6 million, and we are not aware of any unpaid fines. Fines are only part of the enforcement toolkit, however, with over £164.6 million of enforcement undertakings announced over the same period.

I politely suggest to my noble friend that we do not indulge criminal organisations. We put in payment plans because it would not help a water company if we forced it to pay fines so that it went bust. I do not think that would help consumers at all. So we need to bring in sensible payment plans which ensure that we get the money back, but we are also bringing in tough, swift penalties to clamp down further on water companies. For example, we have increased enforcement powers to the regulators, we have given existing regulators the teeth they need to take tougher action against water companies, and the Environment Agency can now impose automatic penalties, and penalties to the lower civil standard of proof. We are looking to clamp down heavily on offenders.

I politely suggest to my noble friend that we do not indulge criminal organisations. We put in payment plans because it would not help a water company if we forced it to pay fines so that it went bust. I do not think that would help consumers at all. So we need to bring in sensible payment plans which ensure that we get the money back, but we are also bringing in tough, swift penalties to clamp down further on water companies. For example, we have increased enforcement powers to the regulators, we have given existing regulators the teeth they need to take tougher action against water companies, and the Environment Agency can now impose automatic penalties, and penalties to the lower civil standard of proof. We are looking to clamp down heavily on offenders.

It is important that the water companies pay the fines in such a way that it does not impact on consumers and consumer bills, and the Government are certainly keen to enforce that.

It is important that the water companies pay the fines in such a way that it does not impact on consumers and consumer bills, and the Government are certainly keen to enforce that.

We have announced that we are reopening the sustainable farming incentive, and we hope for a good response to it. The important thing to note about the fines is that currently, if they are from Ofwat, they go to Ofwat and then to the Treasury, and if they are EA fines they go straight into the Treasury. It is important that we have an agreement where we hypothecate the fines so that Defra can decide the projects where the fine money will make the biggest difference, and then HMT provides us with the money to do that. That is the important focus.

We have announced that we are reopening the sustainable farming incentive, and we hope for a good response to it. The important thing to note about the fines is that currently, if they are from Ofwat, they go to Ofwat and then to the Treasury, and if they are EA fines they go straight into the Treasury. It is important that we have an agreement where we hypothecate the fines so that Defra can decide the projects where the fine money will make the biggest difference, and then HMT provides us with the money to do that. That is the important focus.

I disagree with the noble Baroness about the White Paper being timid. I believe it sets out once-in-a-generation reforms that will really transform the water system for good and lead to a water Bill which Members of this House, including the noble Baroness, can help us make the best piece of legislation for the water industry that we have ever seen.

I disagree with the noble Baroness about the White Paper being timid. I believe it sets out once-in-a-generation reforms that will really transform the water system for good and lead to a water Bill which Members of this House, including the noble Baroness, can help us make the best piece of legislation for the water industry that we have ever seen.

The Government have very ambitious plans for tree-planting, including three national forests, one of which has already begun planting and two are progressing well, so we are very keen. We understand the impact that trees can have in mitigating both climate change and flooding. We absolutely want to work with farmers to ensure that we can help and support them to plant trees in order to support their ambitions.

The Government have very ambitious plans for tree-planting, including three national forests, one of which has already begun planting and two are progressing well, so we are very keen. We understand the impact that trees can have in mitigating both climate change and flooding. We absolutely want to work with farmers to ensure that we can help and support them to plant trees in order to support their ambitions.

In March last year, Yorkshire Water agreed to pay an enforcement package of £40 million to address the failures that were found by the investigation at that time. That package is to prioritise work on some of the most problematic storm overflows in environmentally sensitive areas to ensure that they spill less than 20 times a year. Surely that must be our priority.

In March last year, Yorkshire Water agreed to pay an enforcement package of £40 million to address the failures that were found by the investigation at that time. That package is to prioritise work on some of the most problematic storm overflows in environmentally sensitive areas to ensure that they spill less than 20 times a year. Surely that must be our priority.

The noble Lord makes a helpful suggestion, and I am happy to take that back to the department.

The noble Lord makes a helpful suggestion, and I am happy to take that back to the department.

We are working to ensure that the money that we get from fines is spent in the best possible way. We have had so many debates and questions around water from everybody in this House; what we need to do is tackle the

problem for good and for the long term. We can talk about fines and about bonuses until we are blue in the face, but what we want to find is real change. That is what we are doing with the water White Paper, and what we will do with our water Bill.

We are working to ensure that the money that we get from fines is spent in the best possible way. We have had so many debates and questions around water from everybody in this House; what we need to do is tackle the

problem for good and for the long term. We can talk about fines and about bonuses until we are blue in the face, but what we want to find is real change. That is what we are doing with the water White Paper, and what we will do with our water Bill.

As I am sure the noble Lord is aware, water companies are private companies. It is not for the Government to interfere in how private companies operate, including their pay structures. However, having said that, we need a tough regulator to ensure that we are getting the best value from water companies.

As I am sure the noble Lord is aware, water companies are private companies. It is not for the Government to interfere in how private companies operate, including their pay structures. However, having said that, we need a tough regulator to ensure that we are getting the best value from water companies.

I suggest that the noble Lord has asked an incredibly wide-ranging and sweeping question. I am afraid I simply do not have those figures at my fingertips.

I suggest that the noble Lord has asked an incredibly wide-ranging and sweeping question. I am afraid I simply do not have those figures at my fingertips.

When the Water (Special Measures) Act passed, one of its key parts was around making chief executives much more responsible for the pollution that was happening on their watch. I am very pleased that we have got that legislation through. We just need to build on it. We need to make sure that water companies can no longer get away with the kind of behaviour they have been getting away with for years.

When the Water (Special Measures) Act passed, one of its key parts was around making chief executives much more responsible for the pollution that was happening on their watch. I am very pleased that we have got that legislation through. We just need to build on it. We need to make sure that water companies can no longer get away with the kind of behaviour they have been getting away with for years.

To ask His Majesty’s Government how many of the fines imposed by regulators on England’s water companies in 2024 and 2025 are yet to be paid in full.

To ask His Majesty’s Government how many of the fines imposed by regulators on England’s water companies in 2024 and 2025 are yet to be paid in full.

Lords third reading. Bill passed.

Lords third reading. Bill passed.

Lords second reading. Agreed to on question. Bill committed to a Committee of the Whole House.

Lords second reading. Agreed to on question. Bill committed to a Committee of the Whole House.

To ask His Majesty's Government on what dates (1) Thames Water, (2) Yorkshire Water, and (3) Northumbrian Water, paid in full the respective fines of £104 million, £47 million and £17 million announced by Ofwat on 6 August 2024.

To ask His Majesty's Government on what dates (1) Thames Water, (2) Yorkshire Water, and (3) Northumbrian Water, paid in full the respective fines of £104 million, £47 million and £17 million announced by Ofwat on 6 August 2024.

To ask His Majesty's Government on what date Thames Water paid the £18.2 million fine announced by Ofwat on 19 December 2024 for violation of dividend payment rules.

To ask His Majesty's Government on what date Thames Water paid the £18.2 million fine announced by Ofwat on 19 December 2024 for violation of dividend payment rules.

To ask His Majesty's Government, further to remarks by Baroness Hayman of Ullock on 29 January (HL Deb col 251), what is the breakdown of the £150 million in fines issued to water companies since 2015.

To ask His Majesty's Government, further to remarks by Baroness Hayman of Ullock on 29 January (HL Deb col 251), what is the breakdown of the £150 million in fines issued to water companies since 2015.

To ask His Majesty's Government what was the amount of fines paid by each of the water companies in each of the past five years.

To ask His Majesty's Government what was the amount of fines paid by each of the water companies in each of the past five years.