Defra consults on the modernisation of sewage sludge regulation for England

Defra has launched a consultation on reforming the regulation of sewage sludge in England, with a response deadline of 24 March 2026. Updating the regulation governing the application of sewage sludge onto agricultural land has been a long time coming: campaigners have argued that the existing Sludge (Use in Agriculture) Regulations 1989 are well out of date, and the lack of progress on reform has even been the subject of High Court litigation. The existing regulations were based on a 1980s EEC Directive designed to control the introduction of heavy metals from urban wastewater into agricultural soils and had no mechanism to be adapted to contaminants of emerging concern (campaign groups have been particularly focused on PFAS ‘forever chemicals’ and microplastics). The regime is also silent on costs recovery mechanisms under the ‘polluter pays’ principle, which has meant limited funds for supervision, investigation and enforcement. 

Against this background, the consultation contains few surprises. The clear preference (even if Defra has not explicitly said as much) is to bring the spreading of sewage sludge on agricultural land into the environment permitting regime (EPR), to sit alongside other uses of sludge and deployment of recovered wastes to land. This provides the Environment Agency with both greater flexibility, through the issue of environmental permits with conditions that can be varied as the science develops, and a mechanism to recover its costs of regulation and enforcement, through charges and fees. 

The principle makes a good deal of sense: the fact that the deployment of sewage sludge to agricultural land sits outside the current EPR is something of an historic anomaly, and Defra is correct to say that the EPR provides a more flexible tool for future regulation. It is also correct to observe that better regulation actually mitigates some risk for the water sector, as having a clear and modern framework for the deployment of sewage sludge reduces uncertainty around current deployment and the potential liabilities that might arise. A modern regulatory system could (and should, if implemented well) provide more certainty on the future direction of travel and facilitate investment.

There are, however, some big issues to be resolved:

• Sewage sludge is a product of society and the costs of dealing with it will be paid through water bills: given the public reaction to rising sewerage charges, government and the water sector will need to ensure that costs remain proportionate and affordable.
• On a related point, society will continue to produce sewage and the sludge must go somewhere. The land for deployment of sewage sludge is already limited and increasing the regulatory burden is likely to reduce the number of landowners who are willing to make land available. There needs to be a transition plan so that alternative options are available in good time.
• Timing is important, given that the water sector and the economic regulator Ofwat have only recently set the charges for the latest investment cycle, running to 2030. There is a nod to this fact in the consultation document, which talks about the direction of travel being clear in advance of the next price review determinations in 2029.
• Sewage sludge contains valuable nutrients, some of which (phosphorus in particular) are becoming scarce, and so alternative routes such as incineration are no panacea.
• Currently, the EPR is not running smoothly: long permitting delays, high charges and (some argue) an overly cautious approach to decision-making mean that there is rightly concern about whether EPR will make dealing with sludge unduly burdensome and bureaucratic.

Our water sector specialists have worked with water and sewerage companies on bioresources strategies, with landowners on permitting, and with enterprises developing innovative uses of sewage sludge in the circular economy. With this understanding of the lifecycle of bioresources, we can support the water sector, landowners and clients with innovative technologies to navigate the implications, risks and opportunities of the proposed regulatory changes. 

We recognise that effective regulation is necessary to ensure sludge spreading provides maximum economic and agricultural benefit whilst not compromising human health or environmental protection.

https://consult.defra.gov.uk/the-sewage-sludge-team/consultation-on-reform-of-the-regulatory-framework/