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Reductions to abstraction, leakage, chemical runoff from agriculture and cutting pollutants in waterways will all be reassessed under the upcoming Environment Bill.

The Department for Environment, Food and Rural Affairs (Defra) has outlined a number of proposals to protect and enhance waterways within the bill, which will remain flexible to adapt as required.

Details remain light on the specifics of the objectives but they will include measures to allow the Environment Agency (EA) to further manage sustainable abstraction without the need for compensation.

The update said Defra is considering a more inclusive approach to calculating overall water consumption and setting a target for demand within the bill that would impact the volume of water companies can abstract.

It said leakage rates, consumption in the non-household retail market and a new target for PCC could be “reflected” in this.

Defra said a demand target would “encourage water companies to go further” in their efforts to tackle leakage as well encouraging demand management in the non-household sector.

Water efficiency manager at Southern Water, Ben Earl, welcomed the move towards a national water saving based on distribution input rather than PCC with an approach that includes non-residential users also.

He said: “While PCC is really important as households are the largest users of water in society, ensuring that every sector of the economy and UK life is playing its part in helping to reduce water usage is essential. With water efficiency comes associated energy efficiency and so a wider transition to a zero-carbon economy as well as wider environmental goals are being addressed together.”

Water efficiency labelling and amending building regulations to include firmer per capita consumption (PCC) targets were noted as part of Defra’s consultation but the results have yet to be published.

Earl said: “Ensuring that everyone understands the value of water is also essential, so additional plans for a mandatory water label linked to minimum standards and simplified building regulations will drive positive change in society as consumers understand the efficiency of water using products and how they can reduce usage and bills through simple choices.”

The latest update to the bill progression sets out the impact that pollution from rural areas has on waterways (40 per cent) and pollution from wastewater (36 per cent) and the need to protect habitats affected by this, including chalk streams.

It recognises the urgent need to reduce water consumption to ensure resilience of supply, especially as population continues to grow and the detrimental impact increasing competing demands on water has the natural environment.

Elsewhere, Defra singled out combined sewer overflows (CSOs) – which came under public scrutiny recently – as a specific area to address when considering targets to reduce the impact of wastewater on ecology including pollutants from wastewater.

The bill’s four key priorities are to improve air quality; reduce use of resources and make recycling more efficient to reduce the volume of residual waste and plastic pollution; improve biodiversity on land, in freshwaters and at sea; and to tackle water pollution from agriculture and wastewater treatment.

Environment secretary George Eustice called the targets in the bill the “driving force behind our bold action” to attempt to improve the natural environment in the face of climate change and booming population.

Eustice said: “I hope these targets will provide some much-needed certainty to businesses and society, as we work together to build back better and greener.”