The Housing Benefit (Earned Income Disregards) (Amendment) (No. 2) Regulations 2026
Removed the £250,000 cap on variable monetary penalties for environmental offenses in England.
This Order amends the Environmental Civil Sanctions (England) Order 2010 by removing the £250,000 limit on variable monetary penalties that the Environment Agency and Natural England can impose.
It applies to environmental offenses committed in England, allowing regulators to issue unlimited fines for breaches of regulations concerning water quality, waste, and permit conditions.
The revised penalty structure applies only to offenses occurring on or after 1 December 2023.
Arguments For
The explanatory memorandum states that removing the financial cap allows regulators to impose penalties that are more proportionate to the degree of environmental harm caused.
Proponents argue that the change strengthens the 'polluter pays' principle by ensuring penalties can exceed the financial benefit gained from non-compliance.
The government asserts that providing a broader range of financial sanctions offers a more flexible alternative to criminal prosecution for serious environmental breaches.
The document cites the need to ensure that the cost of penalties acts as a sufficient deterrent against future environmental damage.
Arguments Against
Legal commentators have noted that removing the cap grants significant discretionary power to administrative bodies, which may lead to inconsistency in fine levels across different regions.
Industry groups have expressed concern that the lack of an upper limit creates financial uncertainty for businesses, particularly regarding insurance and liability planning.
Some legal scholars argue that imposing very high 'civil' fines for conduct that could be criminal may bypass the procedural protections afforded to defendants in a court of law.
Affected parties have questioned whether the Environment Agency has sufficient resources to manage the increased complexity of determining uncapped penalties.
Citation, commencement and relief
1.—(1) This Order may be cited as the Environmental Civil Sanctions (England) (Amendment) Order 2023.
(2) It comes into force on 1st December 2023.
(3) The amendments made by article 2 do not apply in relation to an offence committed before 1st December 2023.
This section establishes the official name of the legislation and sets the start date as 1 December 2023.
It specifies a non-retroactive application, meaning the new penalty rules do not apply to any illegal acts committed before this date.
Amendment of the Environmental Civil Sanctions (England) Order 2010
2.—(1) The Environmental Civil Sanctions (England) Order 2010 is amended as follows.
(2) In Schedule 5 (variable monetary penalties, restoration notices and compliance notices), in paragraph 3 (variable monetary penalties)—
(a) in sub-paragraph (3), for “The” substitute “Subject to sub-paragraph (3A), the”;
(b) after sub-paragraph (3), insert—
“(3A) In relation to an offence under the Environmental Permitting (England and Wales) Regulations 2016, the amount of a variable monetary penalty must not exceed the maximum fine that could be imposed by the court if the person were successfully prosecuted for that offence.”;
(c) omit sub-paragraph (4).
This section alters the 2010 Order by deleting the provision that previously limited variable monetary penalties to a maximum of £250,000.
For offenses related to environmental permits, it directs that the civil penalty cannot exceed the maximum fine a criminal court would be authorized to issue for the same act.
By removing the specific £250,000 figure, it permits regulators to calculate penalties based on the severity of the breach without a fixed upper boundary.
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