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Water firms have been accused of an “environmental cover up” as fresh figures revealed one in seven sewage monitors – meant to record spills – were faulty.

This rose to a third of devices for embattled Thames Water, which is facing the risk of emergency nationalisation as it wrestles with a deepening funding crisis.

The number of monitors not working properly has fuelled concerns the scale of the sewage scandal is far bigger than previously thought, further ramping up pressure on the utility firms and government.

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Why is sewage flooding streets?

It comes after separate figures showed dumping of raw sewage into England’s rivers and seas was the worst on record last year.

Discharges of untreated effluent by water companies doubled from 1.8 million hours in 2022 to 3.6 million in 2023, according to Environment Agency data.

The number of individual spills also soared by 54% – from 301,000 incidents in 2022 to 464,000 in 2023, which was blamed in part on the wet weather.

Campaigners argue the pumping of sewage into waterways is the symptom of chronic underinvestment by water companies.

In the face of public anger at widespread pollution, firms recently fast-tracked £180m of investment.

They also plan to invest £10bn by the end of this decade, which they say would lead to 150,000 fewer spills a year.

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Gove: Thames Water leadership a ‘disgrace’

But analysis by the Liberal Democrats found that 15% of all sewage monitors were faulty, prompting the party to demand a national environmental emergency to be declared.

The number and length of sewage dumps from storm overflows, which act as safety valves during heavy rain to stop sewage from backing up into people’s homes, is measured by event duration monitors (EDMs).

However, Lib Dem research has revealed water companies have installed monitors which do not work at least 90% of the time, or have not even installed devices at all.

Across England, there are 2,221 monitors not operating properly.

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The water company with the worst record on faulty sewage monitors was Thames Water, with 33% of its equipment not functioning as it should, according to the Lib Dem research.

The next highest were Southern Water and Yorkshire Water, which both recorded 18.5% of their monitors as faulty.

Some devices have been broken for two years.

Read more:
‘It stinks’: Sewage seeps into people’s gardens
Analysis: Why nationalising Thames Water won’t work

Liberal Democrat environment spokesperson Tim Farron said: “Water companies could be complicit in an environmental cover up. Why on earth would a firm install these monitors if they don’t even work?

“The scale of the sewage scandal could be even larger than originally feared and Conservative ministers are not interested in understanding the true extent of the damage our rivers and beaches are being put through.

“They have let water companies off the hook at every turn and are now letting them get away with not even monitoring the amount of filthy sewage that is being dumped.”

He added: “This scandal requires a national environmental emergency to be declared and for this Conservative government to start treating this issue with the focus that it needs.

“Their inaction has failed our environment and failed communities across the country.”

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A spokesperson for industry body Water UK said: “Water companies are committed to robust monitoring of storm overflows across England with all now monitored – the most comprehensive and extensive monitoring system in the world.

“Due in part to their operating outdoors and in all weather conditions, some monitors will occasionally be temporarily out of action while maintenance is under way.

“This has improved, and the regulator has taken tough new powers to ensure the highest standards.

“We are seeking regulatory approval to invest over £10bn over the next five years – three times the current rate – to increase the capacity of our sewers and remove more than 150,000 annual sewage spills by the end of the decade.”

The issue has become a political battleground, with Labour pledging to ban bonuses for water company bosses and the Greens wanting to renationalise the firms.

While Michael Gove, the former environment secretary-turned-housing secretary, said the leadership of Thames Water was a “disgrace” this week and insisted those responsible for failings must “carry the can”.

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‘More people should be given this chance’: The probation centres transforming offenders’ lives

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'More people should be given this chance': The probation centres transforming offenders' lives

The combination of full prisons and tight public finances has forced the government to urgently rethink its approach.

Top of the agenda for an overhaul are short sentences, which look set to give way to more community rehabilitation.

The cost argument is clear – prison is expensive. It’s around £60,000 per person per year compared to community sentences at roughly £4,500 a year.

But it’s not just saving money that is driving the change.

Research shows short custodial terms, especially for first-time offenders, can do more harm than good, compounding criminal behaviour rather than acting as a deterrent.

Charlie describes herself as a former "junkie shoplifter"
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Charlie describes herself as a former ‘junkie shoplifter’

This is certainly the case for Charlie, who describes herself as a former “junkie, shoplifter from Leeds” and spoke to Sky News at Preston probation centre.

She was first sent down as a teenager and has been in and out of prison ever since. She says her experience behind bars exacerbated her drug use.

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Charlie in February 2023
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Charlie in February 2023


“In prison, I would never get clean. It’s easy, to be honest, I used to take them in myself,” she says. “I was just in a cycle of getting released, homeless, and going straight back into trap houses, drug houses, and that cycle needs to be broken.”

Eventually, she turned her life around after a court offered her drug treatment at a rehab facility.

She says that after decades of addiction and criminality, one judge’s decision was the turning point.

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“That was the moment that changed my life and I just want more judges to give more people that chance.”

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How to watch Sophy Ridge’s special programme live from Preston Prison

Also at Preston probation centre, but on the other side of the process, is probation officer Bex, who is also sceptical about short sentences.

“They disrupt people’s lives,” she says. “So, people might lose housing because they’ve gone to prison… they come out homeless and may return to drug use and reoffending.”

Read more from Sky News:
Care homes face ban on overseas recruitment
Woman reveals impact of little-known disorder

Charlie with Becks at the probation centre in Preston 
grab from Liz Bates VT for use in correspondent piece
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Bex works with offenders to turn their lives around

Bex has seen first-hand the value of alternative routes out of crime.

“A lot of the people we work with have had really disjointed lives. It takes a long time for them to trust someone, and there’s some really brilliant work that goes on every single day here that changes lives.”

It’s people like Bex and Charlie, and places like Preston probation centre, that are at the heart of the government’s change in direction.

:: Watch special programme on prisons on Politics Hub with Sophy Ridge at 7pm

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Inside the UK’s broken prison system where tinkering around the edges will no longer work

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Inside the UK's broken prison system where tinkering around the edges will no longer work

“As far as I’m concerned, there’s only three ways to spend the taxpayers’ hard-earned when it comes to prisons. More walls, more bars and more guards.”

Prison reform is one of the hardest sells in government.

Hospitals, schools, defence – these are all things you would put on an election leaflet.

Even the less glamorous end of the spectrum – potholes and bin collections – are vote winners.

But prisons? Let’s face it, the governor’s quote from the Shawshank Redemption reflects public polling pretty accurately.

Right now, however, reform is unavoidable because the system is at breaking point.

It’s a phrase that is frequently used so carelessly that it’s been diluted into cliche. But in this instance, it is absolutely correct.

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Without some kind of intervention, the prison system is at breaking point.

It will break.

Inside Preston Prison

Ahead of the government’s Sentencing Review, expected to recommend more non-custodial sentences, I’ve been talking to staff and inmates at Preston Prison, a Category B men’s prison originally built in 1790.

Overcrowding is at 156% here, according to the Howard League.

Sophy Ridge talking outside Preston Prison
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Sophy Ridge talking outside Preston Prison

One prisoner I interviewed, in for burglary, was, until a few hours before, sharing his cell with his son.

It was his son’s first time in jail – but not his. He had been out of prison since he was a teenager. More than 30 years – in and out of prison.

His family didn’t like it, he said, and now he has, in his own words, dragged his son into it.

Sophie is a prison officer and one of those people who would be utterly brilliant doing absolutely anything, and is exactly the kind of person we should all want working in prisons.

She said the worst thing about the job is seeing young men, at 18, 19, in jail for the first time. Shellshocked. Mental health all over the place. Scared.

And then seeing them again a couple of years later.

And then again.

The same faces. The officers get to know them after a while, which in a way is nice but also terrible.

Sophy Ridge talking to one of the officers who works within Preston Prison
Image:
Sophy Ridge talking to one of the officers who works within Preston Prison

The £18bn spectre of reoffending

We know the stats about reoffending, but it floored me how the system is failing. It’s the same people. Again and again.

The Sentencing Review, which we’re just days away from, will almost certainly recommend fewer people go to prison, introducing more non-custodial or community sentencing and scrapping short sentences that don’t rehabilitate but instead just start people off on the reoffending merry-go-round, like some kind of sick ride.

But they’ll do it on the grounds of cost (reoffending costs £18bn a year, a prison place costs £60,000 a year, community sentences around £4,500 per person).

They’ll do it because prisons are full (one of Keir Starmer’s first acts was being forced to let prisoners out early because there was no space).

If the government wants to be brave, however, it should do it on the grounds of reform, because prison is not working and because there must be a better way.

Inside Preston Prison, Sky News saw firsthand a system truly at breaking point - picture of a prison officer's back with HMP Preston written on it.
Image:
Inside Preston Prison, Sky News saw first-hand a system truly at breaking point

A cold, hard look

I’ve visited prisons before, as part of my job, but this was different.

Before it felt like a PR exercise, I was taken to one room in a pristine modern prison where prisoners were learning rehabilitation skills.

This time, I felt like I really got under the skin of Preston Prison.

It’s important to say that this is a good prison, run by a thoughtful governor with staff that truly care.

But it’s still bloody hard.

“You have to be able to switch off,” one officer told me, “Because the things you see….”

Staff are stretched and many are inexperienced because of high turnover.

After a while, I understood something that had been nagging me. Why have I been given this access? Why are people being so open with me? This isn’t what usually happens with prisons and journalists.

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Probation centres answer to UK crime?

That’s when I understood.

They want people to know. They want people to know that yes, they do an incredible job and prisons aren’t perfect, but they’re not as bad as you think.

But that’s despite the government, not because of it.

Sometimes the worst thing you can do on limited resources is to work so hard you push yourself to the brink, so the system itself doesn’t break, because then people think ‘well maybe we can continue like this after all… maybe it’s okay’.

But things aren’t okay. When people say the system is at breaking point – this time it isn’t a cliche.

They really mean it.

:: Watch special programme on prisons on Politics Hub with Sophy Ridge at 7pm

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Crypto custodian BitGo secures MiCA license in Germany

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Crypto custodian BitGo secures MiCA license in Germany

Crypto custodian BitGo secures MiCA license in Germany

Goldman Sachs-backed cryptocurrency custody firm BitGo is the latest cryptocurrency company to secure regulatory approval to operate across the European Union.

Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), granted BitGo Europe a Markets in Crypto-Assets Regulation (MiCA) license to provide digital asset services in the EU, the firm announced on May 12.

The license allows BitGo to offer services to crypto-native firms and traditional finance institutions, including banks and asset managers within the EU.

Crypto custodian BitGo secures MiCA license in Germany
Source: BitGo

“This license underscores our commitment to the highest standards of security, transparency, and trust,” BitGo Europe managing director Harald Patt said.

BitGo set up the EU headquarters in 2023

Founded in 2013 in Palo Alto, California, BitGo is a major platform in the cryptocurrency industry specializing in crypto custodial services, holding cryptocurrencies like Bitcoin (BTC) on behalf of its clients. 

BitGo’s latest regulatory milestone in Europe follows efforts to increase its presence in the EU, including establishing local headquarters in Frankfurt in 2023.

Since setting up BitGo Europe in Germany, BitGo has received multiple registrations in EU states, including Italy, Spain, Poland and Greece.

“With the MiCA license now secured, BitGo can operate across the entire EU under a unified, forward-looking regulatory framework,” the firm said in the announcement.

“Broad range of institutional-grade solutions”

BitGo did not specify the services it intends to roll out immediately under the new MiCA license.

“BitGo’s MiCA licence comes at a pivotal moment as BitGo expands its product suite to offer a broad range of institutional-grade digital asset solutions,” the announcement added.

Related: Tether CEO defends decision to skip MiCA registration for USDT

As of May 12, BaFin’s official records did not yet reflect BitGo’s MiCA license, showing only earlier registrations.

Crypto custodian BitGo secures MiCA license in Germany
BaFin data on BitGo’s registrations in Germany as of May 12, 2025, 8:30 am UTC. Source: BaFin

Cointelegraph approached BitGo for additional details on its MiCA license but did not receive a response by the time of publication.

As previously mentioned, Germany has emerged as a major jurisdiction for European businesses seeking MiCA registration, with BaFin issuing licenses to several companies, including Bitpanda and Boerse Stuttgart Digital Custody, in 2025.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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