The findings are set out in an OEP report reviewing EA inspection activity between 2018 and 2022, based on analysis of Compliance Assessment Reports (CAR forms), stakeholder surveys and interviews with regulators and operators.
The report found that many inspections reviewed were of poor quality, with around one third failing to follow EA guidance.
The OEP said this pointed to “systemic issues” in the planning and oversight of inspections.
While the EA reported that 97% of regulated waste sites were compliant during the period reviewed, the OEP questioned whether this was an accurate measure of regulatory effectiveness or actual compliance outcomes.
The watchdog said the metric could give a misleading picture of performance because sites classed within the EA’s “A-C” compliance bands are all counted as compliant, despite some containing known breaches.
The OEP also examined inspections at “A band” sites – regarded as the best-performing facilities – and found that 28% of assessments showed little or no adherence to guidance and/or significant technical or legal errors.
Call for a ‘fundamental redesign’
Remote inspections were another key focus of the report. According to the OEP, 42% of inspections during the review period were carried out off-site.
While the report acknowledged that remote inspections can be an effective regulatory tool, it said it could not identify a clear strategic framework setting out when, how or why different inspection approaches should be used.
The OEP also questioned whether inspection volumes were sufficient, noting that inspectors completed on average one on-site and one remote inspection per month.
Julie Hill, interim chair of the OEP, said: “Strong, outcomes focused environmental regulation is essential if we are to protect nature and support sustainable economic growth.
“We have looked closely at the inspections regime in place as part of the regulation of waste sites and installations in England and have identified some significant short-comings.
“We concluded that while the system was designed in good faith it is no longer working effectively, and is not sufficiently focused on intended environmental outcomes.”
The OEP also called for a “fundamental redesign” of the compliance system to better align policy, legal duties and operational inspection work.
Regulation ‘needs to be effective, efficient, transparent’
Responding to the report, the Environmental Services Association (ESA) said shortcomings in the regulatory regime were allowing waste crime and fraud to persist across the sector.
Sam Corp, ESA Head of Regulation, said weak enforcement risked “holding back investment” if illegal operators felt able to “operate under the radar”.
He pointed to Landfill Tax fraud as an example, saying tackling the issue would require “much more visible and sustained regulatory activity at the gates of suspect sites”.
However, the ESA also warned against what it described as a “knee-jerk reaction” that simply increased routine inspections at well-performing facilities.
He added: “The work of the Environment Agency is vital to help protect people and the environment and to enable responsible businesses in our sector to thrive – but the regulatory regime needs to be effective, efficient, transparent and consistent to deliver the best outcomes for nature, industry and the economy.”
EA’s response
The EA has responded to the report, saying that major reforms to waste site inspections are already underway.
An EA spokesperson said: “This report is based on historic data, and the stronger oversight and clearer outcomes that the OEP is calling for are not future ambitions – we have already put them in place.
“We are cracking down on persistent poor performers by being more consistent through stronger enforcement, utilising data and intelligence to spot non-compliance earlier, and targeting our officers to where they are needed most.
“We will consider the OEP’s recommendations to support our future regulatory improvements, which includes focusing inspections at the highest risk sites.”
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