Charity wants better access to water company fines

A stormwater overflow onto the St Austell River pictured in January 2024

A Cornwall charity is calling for improvements to how money is distributed to organisations when water companies are fined for failings.

The previous government introduced a Water Restoration Fund, with £11m from penalties recently distributed to local projects instead of going to the Treasury.

Nick Taylor, of Three Bays Wildlife Group, said he had to withdraw a funding application because most of the money would have been paid in arrears, adding: "We do not have the funds for that. We would have had to find another grant to get the money - it's ridiculous."

Defra said more than £100m in water company fines would go to local environmental projects, with more detail "in due course".

Nick Taylor says he had to withdraw a bid for funds to help improve the St Austell River

Mr Taylor regularly monitors the water quality on the St Austell River in Cornwall, also known as the White River.

In June, South West Water's Menagwins Wastewater Treatment works on the river was the source of liquid lime pollution that killed thousands of fish, and an investigation is still under way.

"Last season raw sewage from the stormwater overflow also went down the river three months of the year in terms of hours," Mr Taylor said.

In 2024, Mr Taylor put in an application on behalf of the White River Project to the Water Restoration Fund but said he had to withdraw because most the money would have been handed over in arrears.

He said: "I'd definitely like to see the money from the fines paid back on more of a grant basis so it's open to everybody.

"The system at the moment is just not open to small organisations like ours."

• LIVE: SW Bathing Waters - campaigners and experts say what needs looked at

Tessa Wardley, from The Rivers Trust, said the trust had also encountered many issues with the Water Restoration Fund.

"We're engaging with Defra, the Environment Agency, Natural England and others to try and make sure whatever comes out next works better for the environment and is more easily accessible to organisations of all sizes," she said.

Campaigners say there are regular sewage spills from the stormwater overflow at the Menagwins waste water treatment works

A Defra spokesperson said: "The government will invest water company fines into local projects across the country to clean up our rivers, lakes and seas.

"Over £100m in fines and penalties levied against water companies since October 2023, as well as future fines and penalties, will be reinvested into projects to clean up our waters which could include local programmes to address pollution and improve water quality."

They added that "more detail on the projects and programmes that this funding will go towards will be set out in due course".

South West Water said that, following an investigation by regulator Ofwat, it had proposed a £24m enforcement package to be split between reducing the use of storm overflows, sewer misuse and nature recovery.

"We are talking to Three Bays Wildlife Group about the White River Project and share their vision for the future," it said.

"Whilst we aren't in a position to confirm exactly how funding from the £2m nature recovery fund will be allocated until the consultation is over, we hope to be able to support them and are continuing our conversations."

It comes as the findings were published of a long-awaited review into England and Wales' troubled water sector.

Set up in response to growing public concern about sewage spills and rising bills, it issued 88 recommendations, including abolishing Ofwat and bringing water functions from four different regulators into one.

It also warned bills would rise by 30% over the next five years.