Environment Agency

The Environment Agency spends about £114 million a year on water resources management in England and Wales, in order to ensure sufficient water is available to meet the needs of people and the environment, through network monitoring and by regulation using a system of water abstraction licences. This NAO report examines the scope for greater efficiency in the Agency's management of water resources across England. Findings include that, in general, the Agency provides a well-managed and professional service, but there is scope to improve efficiency and realise net savings of £450,000 a year, with a further potential saving of between £1 million to £2 million as a result of internal cost reallocation. Areas for improvements include cost allocation methods used in monitoring sites used jointly for water resource management and flood defence functions; the development of the monitoring network; and greater consistency in regional charges for the Operations Delivery Workforce.