Policy paper

5. Taking action: water for the environment: National Framework for Water Resources 2025

Published 17 June 2025

Applies to England and Wales

 5.1 Achieving environmentally sustainable abstraction: action to date

Since 2008, programmes of work to restore sustainable abstraction have resulted in changes to abstraction licences where actual abstraction has been adversely impacting the water environment. As a result of this work, an additional 62,000 Ml (62 billion litres) of water each year is retained in the environment, including 40,000 Ml of water in chalk streams. This is equivalent to the water used by over 1 million people, approximately the population of Birmingham.

Since 2017, we have also been reviewing, changing and revoking unsustainable abstraction licences where there is a risk to the environment. Through this process we have removed the risk of the potential abstraction of 1,900,000 Ml (1.9 trillion litres) of water each year from licences which are not fully used, reducing the risk to the environment and making more water available to those who need it. This is the equivalent to supplying London with water twice over each year.

5.2 Delivering the ‘Environmental Destination’

Figure 21 sets out how we plan to build on the above action and to continue to address the current and future needs of the water environment. It shows existing programmes of work which are in place to resolve current environmental issues including:

• the Water Industry’s National Environment Programme (WINEP) and its pathway for investigating and identifying solutions, which are progressed through water company water resources management plans and business plans
• programmes of work to restore sustainable abstraction, which will also include planned catchment permit reviews to allow for periodic assessments of sustainability

Figure 21: The identification and delivery of Environmental Destination needs

Figure 21 shows a pathway for identifying future environmental needs and delivering the Environmental Destination. It allows for regional water resources groups to refine the high-level assessment of environmental needs and to develop plans which take account of what is feasible and achievable considering the best value mix of solutions identified in its plan and within the context of legal requirements around protected sites.

It shows that these routes can lead to proposed changes to abstraction licences which are likely to be identified at a catchment scale by the Environment Agency. This is the regulatory default pathway, which may involve proposals for reductions to licence quantities, or the addition of licence conditions to ensure proper protection of the environment (or both).

The figure also shows how regional water resources groups and others can identify collaborative solutions and make alternative proposals to the regulatory default.

The approach ensures that environmental needs are fully accounted for in water resources plans at the outset so that water won’t become a limiting factor to growth and economic development.

The figure also shows a feedback loop where the impact of changes on the environment is monitored and informs the assessment of future environmental needs.

5.2.1 Potential changes to abstraction licences

Where changes are needed to ensure that abstraction is environmentally sustainable, we will act with confidence to put timely solutions in place, and we will seek to do this in conjunction with abstractors and stakeholders.

While we will be legally obliged to secure sustainable abstraction, there will often be choices around how this is achieved. Sometimes, the solution may involve a change to the abstraction licence volumes or conditions to ensure that the environment is protected, and it is possible that the Environment Agency may need to use its powers to formally require these changes to be made.

Through the Water Industry National Environment Programme, water companies have a mechanism for evaluating options for achieving the sustainable abstraction outcomes that are needed. For abstractions not included in this programme, we will encourage regional water resources groups and water abstractor groups (across all sectors) to work collaboratively with abstractors to identify alternative solutions which may reduce or remove the need for the regulatory route for change. We want to identify a role for regional water resources groups and other local planning groups such as water abstractor groups to be able to facilitate the exploration of local options and to be able to propose different solutions. The Environment Agency will then consider the alternative proposals and will look to modify its approach so that the required environmental outcomes are still delivered which may be more acceptable to local abstractors with reduced impact on businesses.

Where changes to abstraction licences are required, we aim to work with licence holders to provide reasonable periods of notice to allow for adaptation measures to be put in place. We will look to give notice ahead of making changes to licences, or build in the date of the change taking effect into the licence itself (or both). Sometimes these changes will be driven by a legal timeline, and it may not be possible to optimise this period of notice. We recognise that full collaboration may not be possible in every situation, particularly where there may be a need to act quickly to prevent environmental damage, or to remove a risk of damage.

We plan to take a prioritised approach, focusing on those catchments with the greatest pressure on water resources and the environment, and we will work with sectors to seek their advice on what is a reasonable period of notice. For example, we will take account of the period needed to plan for, obtain the permissions for and to construct and fill farm storage reservoirs where they are the alternative solution for continued resilience of water supplies for food production.

5.2.2 Incorporation in regional water resources plans

Regional water resources groups will set out their initial proposals for achieving an environmentally sustainable abstraction regime in regional water resource plans, taking account of the short term and longer-term actions needed to deliver change. These proposals will develop as plans are updated. We will publish further detailed guidance on how we expect water users to develop the environmental destination to use in water resources planning. This will build on existing approaches to environmental destination and sustainable abstraction planning but look to deliver outcomes to meet current requirements quicker, where feasible, and better.

The guidance will consider latest climate change predictions and consider government commitments for the environment alongside the current minimum regulatory requirements.

We will work with government and regulators, Natural England, regional water resources groups and water abstractor groups, as well as environmental interest groups and organisations to develop this shared ambition to enable an environmentally sustainable abstraction regime.

5.3 Nature-based solutions

Nature-based solutions are actions that involve working with nature to address societal and environmental challenges. They can often be used alongside other measures including grey infrastructure. Many catchments no longer function naturally due to pressures such as physical modifications and water quality issues. When catchments operate naturally, they become more resilient to challenges such as flooding, drought, and water scarcity. Restoring their natural functions is key to mitigating these growing pressures. Nature-based solutions offer a multi-benefit approach and should be actively promoted in catchment restoration efforts.  

Nature-based solutions can help to slow and store water within the landscape. They can sustain water supplies by improving soil structure, increasing water infiltration and storage capacity, increasing groundwater recharge, or enhancing or creating new storage features within the floodplain or as wetlands. Nature-based solutions can also help mitigate drought through the slow release of water from natural storage features, including those from surface water, soil and groundwater. That’s why an integrated approach to delivery is so important to achieve the right mix of outcomes.

Nature-based solutions are generally implemented with the intention of delivering water quality, habitat restoration and flood and coastal erosion risk management outcomes, in addition to maximizing wider benefits. The National Flood and Coastal Erosion Risk Management Strategy for England (FCERM Strategy) and Roadmap to 2026 identify practical ways in which flood and coastal investments can contribute to wider priorities including nature based solutions, local nature recovery, carbon reductions and more integrated water solutions. This includes enabling actions so that farming and land management practices will better support rural resilience to both floods and droughts.

Nature-based solutions will also provide improved water supplies and drought resilience, as:

• construction of runoff attenuation features such as ponds, bunds, infiltration trenches, scrapes and swales, can improve water storage and groundwater recharge
• improvements to soil health can promote infiltration and retention of water
• peat restoration can help sustain groundwater levels and raise water tables leading to greater carbon storage and sustained flows in rivers during dry periods
• crop cover and good practice land management can reduce surface runoff and increase soil water capacity
• leaky barriers and riparian vegetation management can help increase in-channel storage in rivers
• flood risk management features, including reconnecting floodplains to the river channel, have potential to increase infiltration and enhance groundwater recharge in some places

Water companies often consider nature-based solutions from the perspective of options to improve public water supply security, or to help mitigate the impact of any unsustainable water company abstraction. We want this to continue, but also for nature-based solutions to be considered more widely as an aspect of management of the water environment, and for water resources management.

The Environment Agency will continue to develop opportunity maps that identify areas where benefits from nature-based solutions can be maximised and locations where measures may be less effective or even potentially detrimental (for instance, the wrong vegetation planted in the wrong place may significantly reduce groundwater recharge).

Our evidence of nature-based solutions is growing. We have recently published the update to the Working with Natural Processes Evidence Directory which provides a new evidence base of the flood risk reduction and wider benefits of natural flood management (NFM), giving us more confidence in these measures. We are accelerating investment in NFM through a ring fenced £25 million NFM fund benefitting 38 projects. Through this fund we are providing flood risk reduction and wider benefits to nature and society including to water resources as well as innovating and learning to support the way we invest and deliver NFM in the future.

We will publish a Nature-based Solutions for Water Resources Handbook to help stakeholders consider the opportunities and risks. While we will continue to make the case to policy makers for the continuation of such schemes to reduce this risk and sustain benefits, we will also seek to enhance the strategic approach to delivering solutions. We want Regional Water Resources Groups to help to identify and communicate opportunities and risks, working with catchment scale partners to strategically target the uptake of solutions.

5.4 Abstraction from chalk

England is home to 85% of the world’s chalk streams. They are the most biodiverse of all English rivers and are internationally recognised for the habitats they support. Over-abstraction is a critical pressure on chalk streams, so their protection and enhancement are central to our strategy for environmentally sustainable abstraction.

The groundwater that feeds chalk streams comes from chalk aquifers, which represent a natural storage system that can be used for water supply. It is crucial that the sustainability of abstraction from chalk aquifers is assessed and managed to ensure water supply resilience is balanced against the needs of a healthy environment.

It is essential that the location and siting of abstraction points is carefully considered to avoid sensitive areas, such as headwaters and locations which are specially protected. Rather than dismissing chalk abstraction outright, strategic placement has the potential to mitigate negative impacts. By situating abstraction points away from vulnerable locations, the integrity of chalk rivers can be protected while the resource benefits from chalk aquifers is maintained. The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) has commissioned research (Chalk Streams First project) to help understand the opportunities and constraints around re-siting sensitive abstraction away from headwaters.

5.5 Increased demand for water for peatlands

Peatlands are England’s largest terrestrial carbon stores. When drained they are significant sources of greenhouse gas emissions due to oxidation of the peat. Raising water tables in peat soils to reduce carbon emissions is vital to mitigating the impacts of climate change and supporting Net Zero targets.

Effective water table management is key to the sustainability of both upland and lowland peatlands. In upland areas, the focus is on blocking drainage to retain water and prevent peat oxidation. This can have positive impact on biodiversity, drought resilience, drinking water quality and base flows. In lowland areas, the focus is on managing water differently to allow for higher water tables, for example by altering drainage and increasing storage.

A strategic approach to water resources planning will ensure that water is effectively managed to support the rewetting and restoration of naturally functioning peatlands. By working together, stakeholders can develop innovative solutions that enhance water retention, support sustainable agriculture, and protect biodiversity without compromising flood risk management. Collaboration across national and local government, regulators, internal drainage boards (IDBs) and land managers is essential to improve the management, regulation, and planning of water for peat. Opportunities exist through collaboration for the provision of multiple benefits such as from paludiculture and wetter farming, and the use of high-flow storage to provide benefits to both abstractors and the environment.  

The water requirements for sustainable management and restoration of peatlands, especially in the lowlands, may create competing demands, which will need to be assessed and prioritised when water is allocated. We will treat water for peat as a high priority, especially those peatlands form all or part of protected sites, after water demands for critical national infrastructure and along with other government priorities and seek the best outcomes for environment and for climate change mitigation.

Maintaining high water tables in peatlands could lead to a significant additional demand for water, particularly in regions already experiencing water stress. Lowland peat occurs in both water stressed and high rainfall areas of the country. Careful planning and management of water resources will be essential to balance the needs of agriculture, the environment, and other water users.

The implementation of new water management measures may result in applications for licences to abstract and use drainage water or for the regulation of impoundments. These regulatory requirements ensure that water resources are managed sustainably to protect and enhance the environment and to protect the water rights of existing abstractors.  

The government has introduced several pilot projects and funding schemes designed to encourage widespread changes in water management for lowland peatlands. These include the Lowland Agricultural Peat Small Infrastructure Pilot and the Lowland Agricultural Peat Water Discovery Pilot. These pilot studies aim to encourage land managers to adopt practices that improve water management in peatlands, reducing carbon emissions and improving peatland health.

When assessing proposals, we need a good understanding of the downstream impacts of water management. When evaluating changes in water management, consideration of downstream freshwater and estuarine environments and water dependent nature conservation sites is needed as well as potential impacts on existing lawful uses and any impacts on downstream flood risks.

Next: 6. Taking action on public water supplies