The Environment Agency has launched an eight-week consultation on changes to variable monetary penalties which will scrap the £250,000 cap on civil penalties and significantly broaden their scope to target a wider range of environmental offences.

The consultation follows the government announcement that it will lift the current limit of £250,000 that the Environment Agency can impose directly on operators and introduce unlimited variable monetary penalties as a civil sanction, as well as expanding variable monetary penalties to cover more offences under the Environmental Permitting (England and Wales) Regulations 2016.

The Environment Agency said the new enforcement powers, which will come into force on 1 December 2023, will allow it to apply penalties that are quicker and easier to enforce, commenting:

“The changes will ensure regulators have the right tools to drive compliance across a range of sectors, strengthening enforcement and holding all who hold environmental permits to greater account – from energy and water companies to waste operators and incinerators.”

All future environmental fines and penalties from water companies will be put into a new Water Restoration Fund, which will be re-invested back into the environment by supporting local groups and community-led schemes.

Expanding variable monetary penalties will mean that activities regulated under an Environmental Permit will now also be included – for example, discharges to surface water and groundwater and flood risk activities.

In order to implement the changes the Agency now needs to revise its existing enforcement and sanctions policy which sets out how it uses the powers to secure compliance with laws that protect the environment.

The Agency says its penalty principles will remain unchanged which means when it carries out any enforcement activity it aims to:

• change the behaviour of the offender
• remove any financial gain or benefit arising from the breach
• be responsive and consider what is appropriate for the particular offender and regulatory issue, including punishment and the public stigma that should be associated with a criminal conviction
• be proportionate to the nature of the breach and the harm caused
• take steps to ensure any harm or damage is restored
• deter future breaches by the offender and others

Minister for Environmental Quality and Resilience Rebecca Pow commented:

“Polluters must always pay – by lifting the cap on these sanctions, we are simultaneously toughening our enforcement tools and expanding where regulators can use them.

“This consultation builds on government action to increase investment, toughen enforcement and tighten regulation and will make sure there is a proportionate punishment for operators that breach their permits and harm our rivers, seas and precious habitats.”

However, she cautioned that the penalties will only be applied “where it is shown beyond reasonable doubt that an offence has occurred.”

The consultation is seeking views on when penalties are used, how they are calculated and the appeals process - eadline to submit responses is 8 October. Click here to access the consultation online.